Will India ever pay off her external debt?
Debt is the money that is borrowed by a person today to be paid at a later date. External debt of a country means the total debt the country owes to foreign creditors. It includes money owed to international financial institutions, foreign governments, etc.
Answer and Explanation:
Yes, India can definitely pay off her external debt as it has the capacity to do so but India will not do so now as India needs more capital to be invested now as India is in the developing stage. If India pays off her external debt now, It will be debt-free but development will go down. Also, most of the foreign debt is loaned to us by various countries for specific purposes, which is an integral part of diplomatic relations building.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Financial Accounting: Help and ReviewChapter 8 / Lesson 7