UPSC Prelims 2002 · General Studies
Question 36: Economy and Social Development
India's external debt increased from US $98,158 million as at the end of March 2000 to US $100,225 million as at the end of March 2001 due to increase in
AnswerThe answer is (a).
India's external debt rose by about US $2 billion in 2000-01, from $98,158 million to $100,225 million. The given answer attributes the rise to higher multilateral and bilateral (official) debt, that is, loans from agencies such as the World Bank and ADB and from partner governments. Rupee debt, owed mostly to Russia, was falling with repayments, and India was not taking fresh IMF loans in these years.
Why each option is right or wrong
- (a) The given answer: multilateral and bilateral official loans rose over the year.
- (b) Rupee debt, owed mainly to Russia, was being repaid and was falling.
- (c) The given answer does not attribute the rise to commercial borrowings or NRI deposits.
- (d) India was not taking fresh IMF loans in 2000-01.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2002, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.