UPSC Prelims Practice Questions — Why is the U.S. investigating India?

Q1. The recent U.S. investigations launched in March 2026 against India over 'structural excess capacity' and 'forced labour' have been initiated under which one of the following legal provisions?

  • A. Section 122 of the U.S. Trade Act, 1974
  • B. Section 301 of the U.S. Trade Act, 1974
  • C. Section 232 of the U.S. Trade Expansion Act, 1962
  • D. The International Emergency Economic Powers Act, 1977

Q2. In the Section 301 investigation initiated by the USTR on imports linked to 'forced labour' in March 2026, against how many economies (including India) was the probe launched?

  • A. 16
  • B. 34
  • C. 54
  • D. 60

Q3. With reference to the two Section 301 investigations initiated by the USTR in March 2026 against India, consider the following statements: 1. The 'structural excess capacity' investigation covers a smaller set of economies than the 'forced labour' investigation. 2. The 'structural excess capacity' investigation covers manufacturing sectors such as steel, aluminium, batteries and chemicals. 3. The June 2026 preliminary tariff proposal of 12.5% on Indian imports arose from the 'structural excess capacity' investigation, not the 'forced labour' investigation. Which of the statements given above is/are correct?

  1. The 'structural excess capacity' investigation covers a smaller set of economies than the 'forced labour' investigation.
  2. The 'structural excess capacity' investigation covers manufacturing sectors such as steel, aluminium, batteries and chemicals.
  3. The June 2026 preliminary tariff proposal of 12.5% on Indian imports arose from the 'structural excess capacity' investigation, not the 'forced labour' investigation.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. Which one of the following U.S. agencies is empowered to initiate and operationalise the Section 301 investigations that have been launched against India in 2026?

  • A. U.S. Department of Commerce, International Trade Administration
  • B. U.S. International Trade Commission
  • C. Office of the U.S. Trade Representative
  • D. U.S. Customs and Border Protection

Q5. In the context of the recent U.S. trade investigations against India, the term 'Section 301' refers exclusively to which one of the following?

  • A. A provision authorising the USTR to act against foreign acts, policies or practices that are 'unreasonable or discriminatory' and burden U.S. commerce
  • B. A provision allowing the U.S. President to impose tariffs of up to 15% for 150 days to address a balance-of-payments deficit
  • C. A provision permitting the U.S. President to restrict imports that threaten national security on the recommendation of the Commerce Department
  • D. A provision under emergency economic powers authorising the President to regulate international commerce during a declared national emergency