UPSC Prelims Practice Questions — Joint statement on U.S. trade deal provides for rebalancing: Goyal

Q1. Which one of the following Union Ministries leads, on the Indian side, the negotiation and operationalisation of the India–U.S. Interim Bilateral Trade Agreement (Phase 1) announced through the Joint Statement of February 7, 2026?

  • A. Ministry of External Affairs
  • B. Ministry of Finance (Department of Revenue)
  • C. Ministry of Commerce and Industry (Department of Commerce)
  • D. Ministry of Corporate Affairs

Q2. With reference to the U.S. tariff regime on Indian goods before and after the India–U.S. Joint Statement of February 7, 2026, consider the following statements: 1. The U.S. reciprocal tariff on Indian originating goods was lowered from 25% to 18%. 2. The additional 25% punitive tariff imposed on India for purchases of Russian crude oil was retained under the new framework. 3. India committed to purchase about $500 billion worth of U.S. goods — including energy products, aircraft and aircraft parts, precious metals, technology products and coking coal — over the next five years. Which of the statements given above is/are correct?

  1. The U.S. reciprocal tariff on Indian originating goods was lowered from 25% to 18%.
  2. The additional 25% punitive tariff imposed on India for purchases of Russian crude oil was retained under the new framework.
  3. India committed to purchase about $500 billion worth of U.S. goods — including energy products, aircraft and aircraft parts, precious metals, technology products and coking coal — over the next five years.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. With reference to India's $500 billion procurement commitment to the United States announced under the February 7, 2026 Joint Statement, consider the following categories of U.S. goods: 1. Energy products 2. Coking coal 3. Defence equipment 4. Aircraft and aircraft parts Which of the above is/are correctly identified as categories explicitly listed in the commitment?

  1. Energy products
  2. Coking coal
  3. Defence equipment
  4. Aircraft and aircraft parts
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4

Q4. The February 7, 2026 Joint Statement on the India–U.S. Interim Trade Deal was issued from the U.S. side solely under the authority of which one of the following officials?

  • A. U.S. Secretary of State
  • B. U.S. Trade Representative (Ambassador Jamieson Greer)
  • C. U.S. Secretary of the Treasury
  • D. U.S. Secretary of Commerce