UPSC Prelims Practice Questions — Ambiguities in the U.S.-India trade deal

Question 1

With reference to India's tariff and non-tariff barrier commitments under the framework for the U.S.–India Interim Trade Agreement announced in February 2026, consider the following U.S. exports:
1. Dried distillers' grains (DDGs)
2. Red sorghum
3. Basmati rice
4. Soybean oil
Which of the above is/are correctly identified as items on which India has agreed to eliminate or reduce tariffs?

Accepted Answer

1, 2 and 4 only

Answer

1 and 3 only

Answer

2 and 4 only

Answer

1, 2, 3 and 4

Question 2

In the context of India's concessions under the U.S.–India Interim Trade Agreement framework (February 2026), the term 'DDGs' refers to:

Accepted Answer

Dried distillers' grains, a co-product of grain-based ethanol production used primarily as animal feed

Answer

Differential Development Grants extended by USAID to Indian agri-clusters

Answer

Diversified Dairy Goods covered under a WTO tariff-rate-quota schedule

Answer

Defence Dual-use Goods listed under the U.S. Arms Export Control Act

Question 3

Under the framework for the U.S.–India Interim Trade Agreement announced in February 2026, the United States agreed to set its reciprocal tariff on the bulk of covered Indian goods at which single rate (down from the prevailing 50%)?

Accepted Answer

18 per cent

Answer

10 per cent

Answer

15 per cent

Answer

25 per cent

Question 4

The Bilateral Trade Agreement (BTA) negotiations between India and the United States, whose first concrete output was the February 2026 Interim Trade Agreement framework, were formally launched in which year?

Accepted Answer

2025

Answer

2019

Answer

2023

Answer

2026

Question 5

With reference to the commitments made by India under the framework for the U.S.–India Interim Trade Agreement (February 2026), consider the following:
1. Elimination or reduction of tariffs on all U.S. industrial goods.
2. Commitment to stop, directly or indirectly, importing Russian Federation crude oil.
3. Signalled purchases of U.S. energy, information and communication technology, and coal products.
4. Grant of Most-Favoured-Nation (MFN) status to the United States for the first time under the WTO framework.
Which of the above is/are NOT correctly identified as a commitment under the framework?

Accepted Answer

4 only

Answer

1 and 2 only

Answer

2 and 3 only

Answer

1 and 4 only

UPSC Prelims Practice Questions — Ambiguities in the U.S.-India trade deal

Q2. In the context of India's concessions under the U.S.–India Interim Trade Agreement framework (February 2026), the term 'DDGs' refers to:

Q3. Under the framework for the U.S.–India Interim Trade Agreement announced in February 2026, the United States agreed to set its reciprocal tariff on the bulk of covered Indian goods at which single rate (down from the prevailing 50%)?

Q4. The Bilateral Trade Agreement (BTA) negotiations between India and the United States, whose first concrete output was the February 2026 Interim Trade Agreement framework, were formally launched in which year?