UPSC Prelims Practice Questions — Zero tariff textiles exports to U.S. possible for India: Goyal

Question 1

Which Union Ministry leads the negotiation of the India-U.S. Interim Trade Agreement that proposes a zero reciprocal tariff for Indian textile exports using U.S.-origin raw material?

Accepted Answer

Ministry of Commerce and Industry

Answer

Ministry of External Affairs

Answer

Ministry of Finance

Answer

Ministry of Textiles

Question 2

The U.S. Generalised System of Preferences (GSP), under which India enjoyed duty-free access to the U.S. market until its withdrawal in 2019 — a key backdrop to the current India-U.S. trade renegotiations — was originally instituted under which one of the following U.S. statutes?

Accepted Answer

Trade Act, 1974

Answer

Smoot–Hawley Tariff Act, 1930

Answer

Trade Expansion Act, 1962

Answer

Trade Promotion Authority Act, 2015

Question 3

With reference to the Bangladesh-U.S. trade deal (February 2026) and the India-U.S. Interim Trade Agreement currently being finalised, consider the following statements:
1. India's proposed overall reciprocal tariff under the ITA is lower than the 19% finalised in the Bangladesh-U.S. deal.
2. Both arrangements condition the zero reciprocal tariff on textile/apparel exports upon the use of U.S.-origin raw material (cotton/man-made fibre).
3. Under the U.S. tariff guidance, the share of U.S.-origin raw material required for finished goods to qualify for zero duty is at least 20% of the import value.
Which of the statements given above is/are correct?

Accepted Answer

1, 2 and 3

Answer

1 only

Answer

1 and 2 only

Answer

2 and 3 only

Question 4

Which one of the following is currently the single largest export destination for India's textile and apparel sector — the context that makes the proposed zero reciprocal tariff under the India-U.S. ITA strategically vital?

Accepted Answer

United States

Answer

European Union

Answer

United Kingdom

Answer

United Arab Emirates

UPSC Prelims Practice Questions — Zero tariff textiles exports to U.S. possible for India: Goyal

Q1. Which Union Ministry leads the negotiation of the India-U.S. Interim Trade Agreement that proposes a zero reciprocal tariff for Indian textile exports using U.S.-origin raw material?

Q2. The U.S. Generalised System of Preferences (GSP), under which India enjoyed duty-free access to the U.S. market until its withdrawal in 2019 — a key backdrop to the current India-U.S. trade renegotiations — was originally instituted under which one of the following U.S. statutes?

Q4. Which one of the following is currently the single largest export destination for India's textile and apparel sector — the context that makes the proposed zero reciprocal tariff under the India-U.S. ITA strategically vital?