Correct option is D
According to the External Debt Management Report released by the Ministry of Finance, the Euro-denominated debt is the second largest component of India's external debt after US Dollar-denominated debt. As of December 2021, the US Dollar accounted for a substantial majority of India's external debt, while the Euro followed as the second most significant currency.
India's external debt comprises borrowings by the government, public sector units, and private sector entities from foreign sources. The US Dollar's dominance in global trade and finance makes it the primary currency for such borrowings, but the Euro also plays a significant role, given India's trade relations with the European Union.
Other currencies like the Japanese Yen (Yen) and Special Drawing Rights (SDR) are also part of India's external debt, but their shares are much smaller in comparison to the US Dollar and Euro. The Indian Rupee, though important domestically, does not significantly feature in external debt statistics because it is not a major global currency for borrowing.
