UPSC Prelims Practice Questions — Trade deal: unanswered questions remain

Question 1

Under the India–US Interim Trade Agreement framework (February 2026), the additional 25% punitive 'reciprocal' tariff imposed by the United States on Indian goods was withdrawn primarily on account of which one of the following Indian commitments?

Accepted Answer

India's commitment to cease purchases of Russian Federation crude oil

Answer

India's accession to the Trade Pillar of the Indo-Pacific Economic Framework (IPEF)

Answer

India's commitment to fully liberalise its dairy market for US producers

Answer

India's signing of a binding Critical Minerals Agreement with the United States

Question 2

With reference to Indian agricultural exports granted zero-duty access to the United States market under the February 2026 Joint Statement, consider the following items. Which of the above are correctly identified as being granted zero-duty access?

Accepted Answer

1 and 3 only

Answer

2 and 4 only

Answer

1, 2 and 3

Answer

1, 3 and 4

Question 3

Which of the following Indian government entities leads the negotiation of the India–United States Bilateral Trade Agreement (BTA) on behalf of the Government of India?

Accepted Answer

Department of Commerce, Ministry of Commerce and Industry

Answer

Department of Economic Affairs, Ministry of Finance

Answer

Economic Diplomacy Division, Ministry of External Affairs

Answer

Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry

Question 4

Under the India–US Interim Trade Agreement framework announced in February 2026, what is the reciprocal tariff rate (in per cent) applied by the United States on the covered basket of Indian goods?

Accepted Answer

18%

Answer

10%

Answer

15%

Answer

25%

UPSC Prelims Practice Questions — Trade deal: unanswered questions remain

Q1. Under the India–US Interim Trade Agreement framework (February 2026), the additional 25% punitive 'reciprocal' tariff imposed by the United States on Indian goods was withdrawn primarily on account of which one of the following Indian commitments?

Q2. With reference to Indian agricultural exports granted zero-duty access to the United States market under the February 2026 Joint Statement, consider the following items. Which of the above are correctly identified as being granted zero-duty access?

Q3. Which of the following Indian government entities leads the negotiation of the India–United States Bilateral Trade Agreement (BTA) on behalf of the Government of India?

Q4. Under the India–US Interim Trade Agreement framework announced in February 2026, what is the reciprocal tariff rate (in per cent) applied by the United States on the covered basket of Indian goods?