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Identify and explain the concept from given illustration.Government of India takes loan from World Bank for Mumbai Metro Train. |
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Answer» Concept: External Debt Explanation : When the government borrows from foreign government or international organisations like IMF, World Bank, etc., it is known as external debt. Government needs to raise loan for investing in developmental project of a country. Mumbai Metro Train is a project which require huge investment. So, Government of India takes loan from World Bank. |
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