UPSC Prelims Practice Questions — January trade deficit widens before U.S. tariff relief kicks in

Q1. As per the Ministry of Commerce and Industry's release for January 2026, what was India's merchandise trade deficit for the month?

  • A. US$ 10.38 billion
  • B. US$ 25.04 billion
  • C. US$ 34.68 billion
  • D. US$ 71.24 billion

Q2. India's monthly merchandise trade statistics, such as the January 2026 release showing a US$ 34.68 billion deficit, are officially compiled and published by which of the following?

  • A. Directorate General of Commercial Intelligence and Statistics under the Ministry of Commerce and Industry
  • B. Central Board of Indirect Taxes and Customs under the Ministry of Finance
  • C. Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry
  • D. Statistics Wing of the Reserve Bank of India

Q3. The reduction of U.S. reciprocal tariffs on Indian goods from 50% to 18% in February 2026 was effected under which of the following?

  • A. An Interim Trade Agreement Framework announced jointly by India and the United States in February 2026
  • B. Restoration of India's beneficiary status under the U.S. Generalized System of Preferences (GSP)
  • C. A WTO Dispute Settlement Body ruling on the U.S. reciprocal tariff regime
  • D. The Trade Policy Forum convened under the 2005 India-U.S. Trade and Investment Framework Agreement

Q4. With reference to the India-U.S. interim trade framework of February 2026, consider the following items: 1. U.S. crude oil and LNG 2. Civilian aircraft 3. Coking coal 4. Russian-origin refined petroleum products. Which of the above are correctly identified as goods that India committed to increase imports of from the United States under the framework?

  1. U.S. crude oil and LNG
  2. Civilian aircraft
  3. Coking coal
  4. Russian-origin refined petroleum products
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4