Consider the following statements : 1. Most of India's external debt is owed by governmental entities. 2. All of India's external debt is denominated in US dollars. Which of the statements given above is/are correct?

Option (d) is correct because non-government debt (primarily External Commercial Borrowings and NRI deposits) constitutes the majority—roughly 80%—of India’s external debt, and it is denominated in multiple currencies including the Indian Rupee, SDR, and Yen. Statement 1 is a common trap because, while the government is a major borrower, private sector liabilities are significantly higher in the overall debt profile. The core concept tested is the classification and currency composition of India’s external debt.