The answer to the above question is (b) Explanation: On 31st M | ECONOMY by VIVEK SINGH

The answer to the above question is (b)
Explanation:
On 31st March 2020, India's external debt was $558 billion (20.6% of GDP) which increased to $570 billion (21% of GDP) by 31st March 2021. So, the increase is very less. Because of the covid-19 and recession what has increased is Govt. of India's Debt and State Govts debt which has crossed 90% of GDP on 31st March 2021 from the earlier 75% of GDP on 31st March 2020.

India's External Debt (21% of GDP) = Sovereign Debt (4%) + Non-Sovereign Debt (17%)

Sovereign Debt includes FPIs/FIIs purchasing Govt. of India bonds PLUS bilateral assistance (debt from other countries) PLUS multilateral assistance (debt from institutions like World Bank etc.)

Non-Sovereign Debt includes External Commercial Borrowing (ECB) PLUS FPIs/FIIs purchasing Indian companies bonds PLUS NRIs depositing in Indian banks.

Currency wise, India's external debt includes:
US Dollar denominated (52%)
Indian Rupee denominated (33.3%)
And then some is Yen, Euro, SDR.

The Rupee denominated debt is basically FPIs/FIIs purchasing Indian Govt. bonds and Indian companies bonds in Indian market and Masala bonds raised by Indian companies in abroad market and some NRI deposits in Indian rupees.

Our Forex Reserves is presently $610 billion, so if we want to pay our (India's) External Debt then we would be able to pay as our Forex reserves are more than the India's External debt ($570 billion).

Its important for your prelims because of Govt. debt increasing due to covid-19