UPSC Prelims Practice Questions — India-U.S. interim trade deal needs ‘final touches’

Q1. Which ministry of the Government of India is the nodal ministry leading the negotiations on the India–U.S. interim Bilateral Trade Agreement (BTA)?

  • A. Ministry of External Affairs
  • B. Ministry of Commerce and Industry
  • C. Ministry of Finance
  • D. Ministry of Electronics and Information Technology

Q2. How many new tariff lines did India create in the Union Budget 2026-27 to precisely track imports of items for which market access has been granted to the United States?

  • A. 26
  • B. 40
  • C. 44
  • D. 50

Q3. In the context of the agricultural market access offered under the India–U.S. trade deal, what does a 'Tariff Rate Quota (TRQ)' mechanism for sensitive items like almonds and walnuts mean?

  • A. A fixed annual quantity is allowed duty-free, with all imports beyond it banned outright
  • B. A limited quantity is allowed at reduced duty, while quantities beyond the quota attract a higher duty
  • C. A uniform reduced tariff is applied to unlimited quantities of the item
  • D. Imports are permitted only against an equivalent value of exports to the United States

Q4. Following the February 2026 joint statement, through which instrument did the United States reduce the reciprocal tariff on Indian goods from 50% to 18%?

  • A. An executive order issued by President Donald Trump
  • B. An Act passed by the U.S. Congress
  • C. A Section 301 determination by the USTR
  • D. A dispute settlement ruling of the WTO