Types of external debts in India
External assistance to India has been in the following two forms:
They do not create or involve any obligation of repayment. Like gifts and donations
They create or involve an obligation to pay interest and repay the principal. About 90% of the external assistance received by India has been in the form of loans. We have approached different sources like World Bank, International Monetary Fund (IMF), International Development Association, U.S.A., U.K., Japan etc. for assistance.