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

Question 1

Sanctions and trade restrictions imposed by the U.S. President under the International Emergency Economic Powers Act (IEEPA), 1977 are principally administered and enforced by which of the following bodies?

Accepted Answer

Office of Foreign Assets Control (OFAC), Department of the Treasury

Answer

Bureau of Industry and Security, Department of Commerce

Answer

Office of the United States Trade Representative (USTR)

Answer

Customs and Border Protection, Department of Homeland Security

Question 2

With reference to the U.S. Supreme Court's 2026 decision on tariffs imposed under IEEPA, consider the following statements:
1. The Court held that IEEPA does not authorise the President to impose tariffs.
2. The case was decided as Learning Resources, Inc. v. Trump.
3. Following the ruling, the President relied on Section 232 of the Trade Expansion Act, 1962 to impose replacement tariffs.
4. IEEPA was enacted in 1977.
Which of the above is/are correctly identified?

Accepted Answer

1, 2 and 4

Answer

1, 3 and 4

Answer

2 and 3 only

Answer

1 and 2 only

Question 3

Consider the following statements regarding the India-U.S. Bilateral Trade Agreement process:
1. The BTA was formally announced by Prime Minister Modi and President Trump in February 2025.
2. Under the February 2026 interim framework, the U.S. agreed to apply a reciprocal tariff of 18% on Indian goods, reduced from a peak of 50%.
3. The February 2026 interim framework included tariff reductions by India on dairy products and wheat.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only

Answer

1 only

Answer

2 and 3 only

Answer

1, 2 and 3

Question 4

On the Indian side, the negotiations for the India-U.S. Bilateral Trade Agreement are led by the chief negotiator drawn from which of the following?

Accepted Answer

Department of Commerce, Ministry of Commerce and Industry

Answer

Department of Economic Affairs, Ministry of Finance

Answer

Ministry of External Affairs

Answer

Department for Promotion of Industry and Internal Trade (DPIIT)

Question 5

India's defensive stance on opening its dairy sector in trade negotiations is frequently justified by its position as the world's largest producer of which of the following?

Accepted Answer

Milk

Answer

Rice

Answer

Sugarcane

Answer

Cotton

Question 6

The apex cooperative body that markets the 'Amul' brand and has consistently spearheaded the dairy sector's opposition to liberalising milk imports in trade deals such as RCEP is:

Accepted Answer

Gujarat Cooperative Milk Marketing Federation (GCMMF)

Answer

National Dairy Development Board (NDDB)

Answer

National Agricultural Cooperative Marketing Federation (NAFED)

Answer

Indian Farmers Fertiliser Cooperative (IFFCO)

Question 7

In 2024, the single largest category of U.S. merchandise exports to India by value was:

Accepted Answer

Crude petroleum

Answer

Coal and solid fuels

Answer

Gas turbines

Answer

Aircraft and aircraft parts

Question 8

India's official merchandise (foreign trade) statistics, used to measure bilateral trade with countries such as the United States, are compiled and released by which of the following?

Accepted Answer

Directorate General of Commercial Intelligence and Statistics (DGCIS), Ministry of Commerce and Industry

Answer

Directorate General of Foreign Trade (DGFT)

Answer

National Statistical Office (NSO), Ministry of Statistics and Programme Implementation

Answer

Reserve Bank of India (RBI)

Question 9

The U.S. 'Russian oil' penalty tariff on India was triggered by the fact that, after 2022, which country had become the single largest source of India's crude oil imports?

Accepted Answer

Russia

Answer

Iraq

Answer

Saudi Arabia

Answer

United Arab Emirates

Question 10

In the RCEP negotiations, the 'auto-trigger safeguard mechanism' that India demanded but did not obtain refers to a provision that would have:

Accepted Answer

Automatically raised tariffs once imports from any member surged beyond a specified threshold

Answer

Automatically conferred most-favoured-nation status on all member states

Answer

Automatically resolved trade disputes through binding arbitration without a panel

Answer

Automatically reduced tariffs to zero in a phased manner over a fixed period

Question 11

Under the WTO/GATT framework, the 'Most-Favoured-Nation' (MFN) principle requires that a member:

Accepted Answer

Extend to all WTO members any trade advantage it grants to the products of any one member

Answer

Treat imported goods no less favourably than 'like' domestically produced goods

Answer

Grant developing countries non-reciprocal preferential tariff access

Answer

Bind its tariff rates at zero for all members of a customs union

Question 12

Before India's removal from the U.S. Generalized System of Preferences (GSP) in 2019, the approximate value of Indian exports that entered the U.S. market duty-free under the programme (2018) was closest to:

Accepted Answer

$6.3 billion

Answer

$190 million

Answer

$56 billion

Answer

$129 billion

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

Q1. Sanctions and trade restrictions imposed by the U.S. President under the International Emergency Economic Powers Act (IEEPA), 1977 are principally administered and enforced by which of the following bodies?

Q4. On the Indian side, the negotiations for the India-U.S. Bilateral Trade Agreement are led by the chief negotiator drawn from which of the following?

Q5. India's defensive stance on opening its dairy sector in trade negotiations is frequently justified by its position as the world's largest producer of which of the following?

Q6. The apex cooperative body that markets the 'Amul' brand and has consistently spearheaded the dairy sector's opposition to liberalising milk imports in trade deals such as RCEP is:

Q7. In 2024, the single largest category of U.S. merchandise exports to India by value was:

Q8. India's official merchandise (foreign trade) statistics, used to measure bilateral trade with countries such as the United States, are compiled and released by which of the following?

Q9. The U.S. 'Russian oil' penalty tariff on India was triggered by the fact that, after 2022, which country had become the single largest source of India's crude oil imports?

Q10. In the RCEP negotiations, the 'auto-trigger safeguard mechanism' that India demanded but did not obtain refers to a provision that would have:

Q11. Under the WTO/GATT framework, the 'Most-Favoured-Nation' (MFN) principle requires that a member:

Q12. Before India's removal from the U.S. Generalized System of Preferences (GSP) in 2019, the approximate value of Indian exports that entered the U.S. market duty-free under the programme (2018) was closest to: