Question

Debt service ratio for India is _________ by international standards.

• A. high
• B. low
• C. very low
• D. none of above

Answer 1

The correct option is A high

Debt service ratio is the ratio of debt service payments ( principal + interest ) of a country to that country's export earnings. A country's international finances are higher if this ratio is low. Hence, according to international standards debt service ratio of India is high.