UPSC Prelims Practice Questions — India-U.S. deal has no item that can hurt Indian farmers: Goyal

Q1. In the context of the India–U.S. Interim Trade Agreement framework announced in February 2026, which one of the following best describes 'Mission 500', the joint bilateral goal declared by Prime Minister Narendra Modi and President Donald Trump?

  • A. Total bilateral merchandise trade target of USD 200 billion by 2028
  • B. Total bilateral trade target of USD 350 billion by 2030
  • C. Total bilateral trade target of USD 500 billion by 2030
  • D. Total bilateral trade target of USD 1 trillion by 2035

Q2. With reference to the India–U.S. Interim Trade Agreement framework (February 2026), consider the following Indian agricultural items: 1. Dairy products 2. Maize and soybean 3. Tree nuts such as almonds and pistachios 4. Millets such as jowar and bajra Which of the above is/are correctly identified as items kept OUT of tariff concessions to protect Indian farmers?

  1. Dairy products
  2. Maize and soybean
  3. Tree nuts such as almonds and pistachios
  4. Millets such as jowar and bajra
  • A. 1, 2 and 4 only
  • B. 2 and 3 only
  • C. 1, 2, 3 and 4
  • D. 3 and 4 only

Q3. With reference to the change in U.S. tariffs on Indian goods between the pre-framework position and the India–U.S. Interim Trade Agreement framework of February 2026, consider the following statements: 1. Prior to the framework, the United States had imposed a combined reciprocal tariff of 50 per cent on Indian goods, a part of which was linked to India's purchase of Russian oil. 2. Under the interim framework, the reciprocal tariff applicable to Indian exports has been reduced to 18 per cent. 3. The 18 per cent reciprocal tariff applies uniformly across all categories of Indian exports including dairy and poultry products entering the U.S. market. Which of the statements given above is/are correct?

  1. Prior to the framework, the United States had imposed a combined reciprocal tariff of 50 per cent on Indian goods, a part of which was linked to India's purchase of Russian oil.
  2. Under the interim framework, the reciprocal tariff applicable to Indian exports has been reduced to 18 per cent.
  3. The 18 per cent reciprocal tariff applies uniformly across all categories of Indian exports including dairy and poultry products entering the U.S. market.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. On the Indian side, which one of the following is the nodal Ministry/Department leading the negotiation of the India–U.S. Interim Trade Agreement framework announced in February 2026?

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

Q5. In the context of the India–U.S. Interim Trade Agreement framework, the term 'reciprocal tariff' that was reduced from 50 per cent to 18 per cent on Indian exports refers to:

  • A. An additional country-specific duty levied by the United States on imports from a trading partner, calibrated to that partner's perceived tariff and non-tariff barriers on U.S. goods
  • B. A safeguard duty automatically triggered under WTO rules when import surges threaten a domestic industry
  • C. A countervailing duty imposed to offset subsidies granted by a foreign government to its exporters
  • D. An anti-dumping duty imposed when goods are exported below their normal value in the home market