UPSC Prelims Practice Questions — India, U.S. unveil framework for trade deal

Q1. With reference to the framework for the India-U.S. Interim Trade Agreement announced in February 2026, consider the following Indian exports to the United States: 1. Spices 2. Tobacco 3. Coffee 4. Pulses Which of the above are correctly identified as items granted zero-duty access in the U.S. market under the framework?

  1. Spices
  2. Tobacco
  3. Coffee
  4. Pulses
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4

Q2. With reference to how the framework announced in February 2026 differs from the broader India-U.S. Bilateral Trade Agreement (BTA), consider the following statements: 1. The February 2026 framework constitutes an Interim Agreement and is a precursor to the full BTA, not a substitute for it. 2. Formal negotiations on the broader BTA were launched by the Prime Minister of India and the U.S. President on 13 February 2025, prior to the Interim framework. 3. Unlike the broader BTA, the Interim framework entirely replaces India's MFN tariff obligations under the WTO with bilateral preferences. Which of the statements given above is/are correct?

  1. The February 2026 framework constitutes an Interim Agreement and is a precursor to the full BTA, not a substitute for it.
  2. Formal negotiations on the broader BTA were launched by the Prime Minister of India and the U.S. President on 13 February 2025, prior to the Interim framework.
  3. Unlike the broader BTA, the Interim framework entirely replaces India's MFN tariff obligations under the WTO with bilateral preferences.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. Under the framework for the India-U.S. Interim Trade Agreement announced in February 2026, what is the reciprocal tariff rate that the United States has agreed to apply on the covered goods originating from India (reduced from the earlier 50%)?

  • A. 10 per cent
  • B. 15 per cent
  • C. 18 per cent
  • D. 25 per cent

Q4. In the context of the India-U.S. trade framework announced in February 2026, the term 'Interim Trade Agreement' most precisely refers to which one of the following?

  • A. A phased, bridging arrangement on tariff and market-access commitments that serves as a precursor to a comprehensive Bilateral Trade Agreement
  • B. A WTO-notified Free Trade Agreement covering substantially all trade in goods and services between the two countries
  • C. A preferential arrangement under the U.S. Generalized System of Preferences (GSP) restoring duty-free access for Indian exports
  • D. A customs union with a common external tariff agreed bilaterally between India and the United States