UPSC Prelims Practice Questions — Rahul demands PM’s intervention to save tariff-hit textile sector
Q1. With reference to the United States' reciprocal tariff regime on Indian textile exports during 2025–2026, consider the following statements:
1. Between April 2025 and August 2025, the US reciprocal tariff on Indian textile exports escalated in stages from 10% to 50%.
2. Following the India-US trade arrangement of February 2026, the effective US tariff on Indian textiles became lower than the corresponding rates applied to Bangladesh and Vietnam.
3. After the 2026 arrangement, India's reciprocal tariff is invariably the lowest rate offered by the US to any of its trading partners.
Which of the statements given above is/are correct?
- Between April 2025 and August 2025, the US reciprocal tariff on Indian textile exports escalated in stages from 10% to 50%.
- Following the India-US trade arrangement of February 2026, the effective US tariff on Indian textiles became lower than the corresponding rates applied to Bangladesh and Vietnam.
- After the 2026 arrangement, India's reciprocal tariff is invariably the lowest rate offered by the US to any of its trading partners.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q2. Following the imposition of the 50% US reciprocal tariff in August 2025, production was reportedly suspended in several Indian textile-export hubs. Consider the following hubs:
1. Tiruppur
2. Surat
3. Noida
4. Bhilwara
Which of the above is/are NOT correctly identified as a hub that suspended export production in direct response to the August 2025 50% US tariff?
- Tiruppur
- Surat
- Noida
- Bhilwara
- A. 1 and 3
- B. 2 only
- C. 4 only
- D. 1, 2 and 3
Q3. In the context of the US trade actions of 2025 against Indian textile exports, the term 'reciprocal tariff' is most accurately defined as:
- A. A tariff calibrated to match the duties and non-tariff barriers that the trading partner imposes on equivalent US exports
- B. A tariff imposed solely to offset foreign government subsidies on the imported product, in line with WTO countervailing duty rules
- C. A uniform Most-Favoured-Nation tariff applied identically to imports from all origins regardless of bilateral relations
- D. A safeguard duty triggered automatically whenever import volumes exceed a pre-notified quota threshold
Q4. Within the Government of India, which one of the following is the nodal ministry for the formulation of policy, planning, development, export promotion and regulation of the textile industry, including handicrafts?
- A. Ministry of Commerce and Industry
- B. Ministry of Micro, Small and Medium Enterprises
- C. Ministry of Textiles
- D. Department for Promotion of Industry and Internal Trade
Q5. As per the Ministry of Textiles, approximately how many people are employed (directly and indirectly) in India's textile and apparel sector, the figure cited as making it the country's second-largest employer after agriculture?
- A. About 1.5 crore
- B. About 4.5 crore
- C. About 7 crore
- D. About 12 crore