If there is an increase in the external commercial borrowings in India. What will be the impact on the external debt of the country?
Q. If there is an increase in the external commercial borrowings in India. What will be the impact on the external debt of the country?
Answer: Increase
Notes: Any money that has been borrowed from foreign sources for financing the commercial activities in India are called External Commercial Borrowings. The Government of India permits ECBs as a source of finance for Indian Corporates for expansion of existing capacity as well as for fresh investment.

 

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