Question

Choose the correct option.

Assertion: In India, the external debt is less than the internal debt.

Reason: No country or international organisation is willing to lend money to India.

• A. Both the Assertion and the Reason are correct, and the Reason is the correct explanation of the Assertion.
• B. Both the Assertion and the Reason are correct, but the Reason is not the correct explanation of the Assertion.
• C. The Assertion is true, but the Reason is false.
• D. Both the statements are false.

Answer 1

The correct option is C The Assertion is true, but the Reason is false.

India's external debt is less than its internal debt. In fact, internal debt forms the bulk of the total public debt. We have less external debt because the Indian Government has strategically tried to reduce its dependence on foreign loans. In the past, India availed foreign loans in many instances and repaid. India can still acquire external debt from countries or organisations if it needs.