Question:
The Government of India borrows a large sum of money from international financial institutions to build highways and modernize railways. This situation is an example of:
The Government of India borrows a large sum of money from international financial institutions to build highways and modernize railways. This situation is an example of:
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Debt for productive purposes refers to borrowing for investments that can contribute to long-term economic growth, such as infrastructure projects.
Updated On: Mar 31, 2026
- Debt for fiscal purposes
- Debt for productive purposes
- Public revenue
- Text debt
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The Correct Option is B
Solution and Explanation
When the government borrows money for investments in infrastructure projects like highways and railways, this is considered debt for productive purposes. These investments are expected to contribute to economic growth and development.
Final Answer: (B) Debt for productive purposes.
Final Answer: (B) Debt for productive purposes.
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