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Abstract
The External debt of India is defined as the total debt the country owes to the Foreign Country. The external debt of the country can be further classified as bilateral and multilateral Debt. The debt that the countries owe to the financial institutions such as ADB, IDA, IBRD, IFAD etc. are termed as multilateral debt whereas the debt the amount of funds that the country borrows from the foreign countries are termed as bilateral borrowings. There are two major issues in connection with the borrowings of India from foreign. One of them is quantum of borrowing and the second on is Debt. While both multilateral and bilateral debts are welcomed, India has taken a strict rule while it comes to external Commercial Borrowings since the crisis of Balance Of Payments (BOP) in the year 1991-92. Since it is known that the