UPSC Prelims Practice Questions — Japan commits Official Development Assistance (ODA) to India for four projects in sectors of Urban Transport, Health and Agriculture

Q1. In the Japanese ODA loan package committed to India in March 2026 (JPY 275.858 billion), which one of the following projects received the single largest loan allocation?

  • A. Bengaluru Metro Rail Project Phase 3 (I)
  • B. Mumbai Metro Line 11 Project (I)
  • C. Strengthening Tertiary Healthcare, Medical & Nursing Education in Maharashtra (I)
  • D. Promoting Sustainable Horticulture in Punjab

Q2. With reference to the March 2026 Japanese ODA loan package to India compared with the JICA tranche of JPY 191.736 billion that immediately preceded it, consider the following statements: 1. The March 2026 package was larger in total value than the immediately preceding tranche. 2. The March 2026 package financed a greater number of projects than the immediately preceding tranche. 3. Unlike that preceding tranche, the March 2026 package was confined to projects in Punjab, Karnataka and Maharashtra. Which of the statements given above is/are correct?

  1. The March 2026 package was larger in total value than the immediately preceding tranche.
  2. The March 2026 package financed a greater number of projects than the immediately preceding tranche.
  3. Unlike that preceding tranche, the March 2026 package was confined to projects in Punjab, Karnataka and Maharashtra.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. With reference to the structure of the Japanese ODA loans extended to India in March 2026, consider the following: 1. They carry a repayment period of 30 years. 2. Their procurement terms are classified as 'General Untied'. 3. The Japan International Cooperation Agency (JICA) is the implementing agency on the Japanese side. 4. The Department of Economic Affairs, Ministry of Finance is the nodal department on the Indian side. Which of the above is/are correctly identified?

  1. They carry a repayment period of 30 years.
  2. Their procurement terms are classified as 'General Untied'.
  3. The Japan International Cooperation Agency (JICA) is the implementing agency on the Japanese side.
  4. The Department of Economic Affairs, Ministry of Finance is the nodal department on the Indian side.
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q4. Distinguishing an ODA loan from grant aid and considering the terms of the March 2026 Japanese assistance, examine the following statements: 1. Unlike an outright grant, an ODA loan must be repaid by the recipient government. 2. The March 2026 ODA loans were extended on concessional terms that include a long repayment period and a grace period. 3. Because the procurement was 'General Untied', the related contracts must be awarded only to suppliers from Japan. Which of the statements given above is/are correct?

  1. Unlike an outright grant, an ODA loan must be repaid by the recipient government.
  2. The March 2026 ODA loans were extended on concessional terms that include a long repayment period and a grace period.
  3. Because the procurement was 'General Untied', the related contracts must be awarded only to suppliers from Japan.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. On the Indian side, which one of the following is the nodal body that negotiates and signs Japanese ODA loan agreements?

  • A. Department of Economic Affairs, Ministry of Finance
  • B. Ministry of External Affairs
  • C. Department of Expenditure, Ministry of Finance
  • D. NITI Aayog

Q6. With reference to the history of Japanese ODA to India, consider the following statements: 1. The Delhi Metro is among the flagship projects executed using Japanese ODA. 2. India was the recipient of Japan's first-ever yen loan, extended in 1958. 3. India became the largest recipient of Japanese ODA loans only after the year 2020. Which of the statements given above is/are correct?

  1. The Delhi Metro is among the flagship projects executed using Japanese ODA.
  2. India was the recipient of Japan's first-ever yen loan, extended in 1958.
  3. India became the largest recipient of Japanese ODA loans only after the year 2020.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. In which year was the India–Japan relationship elevated to a 'Special Strategic and Global Partnership'?

  • A. 2014
  • B. 2006
  • C. 2008
  • D. 2000

Q8. Within the India–Japan partnership, which one of the following agencies is the body that operationalises Japan's ODA loans?

  • A. Japan International Cooperation Agency (JICA)
  • B. Japan External Trade Organization (JETRO)
  • C. Japan Bank for International Cooperation (JBIC)
  • D. The Japan Foundation

Q9. Of the four projects financed under the March 2026 Japanese ODA loan package to India, how many fall under the Urban Transport sector?

  • A. Two
  • B. One
  • C. Three
  • D. Four

Q10. With reference to successive Japanese ODA loan tranches to India, consider the following pairings: 1. FY26 (March 2026) package — total of JPY 275.858 billion. 2. FY25 (March 2025) package — total of JPY 191.736 billion. 3. FY23 package — JPY 232.209 billion for nine projects. 4. FY26 (March 2026) package — comprised six projects. Which of the above is/are NOT correctly matched?

  1. FY26 (March 2026) package — total of JPY 275.858 billion.
  2. FY25 (March 2025) package — total of JPY 191.736 billion.
  3. FY23 package — JPY 232.209 billion for nine projects.
  4. FY26 (March 2026) package — comprised six projects.
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 only
  • D. 4 only