UPSC Prelims Practice Questions — India Targets $1 Trillion Exports This Year, $2 Trillion in Five Years: Union Commerce and Industry Minister Shri Piyush Goyal

Q1. With reference to India's announced target of USD 2 trillion in total exports by 2030-31, which one of the following has been designated as the nodal Ministry/Department that anchors the Export Promotion Mission operationalising this target?

  • A. Department of Commerce, Ministry of Commerce and Industry
  • B. Department for Promotion of Industry and Internal Trade (DPIIT)
  • C. Department of Economic Affairs, Ministry of Finance
  • D. Department of Revenue, Ministry of Finance

Q2. Under the Export Promotion Mission (EPM), launched as part of India's strategy to achieve the USD 2 trillion export target by 2030-31, the following sectors have been identified as priority sectors most impacted by global tariff escalations: 1. Textiles 2. Leather 3. Information Technology services 4. Marine products Which of the above is/are NOT correctly identified?

  1. Textiles
  2. Leather
  3. Information Technology services
  4. Marine products
  • A. 1 only
  • B. 3 only
  • C. 3 and 4
  • D. 2 and 3

Q3. Under which one of the following Agreements did the partner bloc commit to making investments of USD 100 billion and creating 1 million direct jobs in India over a 15-year period?

  • A. India-EFTA Trade and Economic Partnership Agreement
  • B. India-European Union Free Trade Agreement
  • C. India-United Kingdom Comprehensive Economic and Trade Agreement
  • D. India-Oman Comprehensive Economic Partnership Agreement

Q4. With reference to India's recently concluded trade agreements, consider the following statements: 1. The India-EFTA Trade and Economic Partnership Agreement was signed in March 2024 and came into force on 1 October 2025, whereas the India-Oman Comprehensive Economic Partnership Agreement was signed in December 2025 and came into force on 1 June 2026. 2. Both the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) and the India-European Union Free Trade Agreement were signed in the calendar year 2025. 3. With the conclusion of the India-EU Free Trade Agreement, the European Union became India's 22nd FTA partner. Which of the statements given above is/are correct?

  1. The India-EFTA Trade and Economic Partnership Agreement was signed in March 2024 and came into force on 1 October 2025, whereas the India-Oman Comprehensive Economic Partnership Agreement was signed in December 2025 and came into force on 1 June 2026.
  2. Both the India-United Kingdom Comprehensive Economic and Trade Agreement (CETA) and the India-European Union Free Trade Agreement were signed in the calendar year 2025.
  3. With the conclusion of the India-EU Free Trade Agreement, the European Union became India's 22nd FTA partner.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. Which one of the following correctly lists the member States of the European Free Trade Association (EFTA), with which India has signed the Trade and Economic Partnership Agreement (TEPA)?

  • A. Switzerland, Norway, Iceland and Liechtenstein
  • B. Switzerland, Sweden, Norway and Denmark
  • C. Austria, Switzerland, Finland and Norway
  • D. Norway, Iceland, Denmark and Sweden

Q6. In FY 2024-25 (April-March), which one of the following was the single largest category of India's merchandise exports by value?

  • A. Petroleum products
  • B. Engineering goods
  • C. Gems and jewellery
  • D. Drugs and pharmaceuticals

Q7. India's Foreign Trade Policy, which operationalises the country's export targets, is formulated and implemented by which one of the following bodies?

  • A. Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry
  • B. Department of Revenue under the Ministry of Finance
  • C. Foreign Investment Promotion Board under the Ministry of Finance
  • D. Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce and Industry

Q8. Which one of the following best describes the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme as currently in force under the Foreign Trade Policy, 2023?

  • A. Rebate to exporters of the embedded Central, State and local duties and taxes on exported products that are not refunded under any other existing mechanism
  • B. A cash incentive paid as a fixed percentage of the FOB value of notified exported goods, over and above the duty drawback claimed by the exporter
  • C. Concessional pre-shipment and post-shipment rupee export credit provided to all exporters through scheduled commercial banks
  • D. Permission to import capital goods at zero basic customs duty subject to a specified export obligation in value terms

Q9. India's Foreign Trade Policy, 2023 is notified and administered by which one of the following authorities?

  • A. Directorate General of Foreign Trade under the Department of Commerce, Ministry of Commerce and Industry
  • B. Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry
  • C. Central Board of Indirect Taxes and Customs under the Department of Revenue, Ministry of Finance
  • D. Directorate General of Trade Remedies under the Department of Commerce, Ministry of Commerce and Industry

Q10. The Rebate of State and Central Taxes and Levies (RoSCTL) Scheme, applicable to the export of apparel/garments and made-ups, is administered by which one of the following Union Ministries?

  • A. Ministry of Commerce and Industry
  • B. Ministry of Textiles
  • C. Ministry of Finance
  • D. Ministry of Micro, Small and Medium Enterprises

Q11. With reference to the Export Promotion Capital Goods (EPCG) Scheme and the Advance Authorisation Scheme, consider the following statements: 1. Under the EPCG Scheme, capital goods can be imported at zero customs duty, whereas under the Advance Authorisation Scheme, inputs physically incorporated in export products are allowed to be imported duty-free. 2. The Advance Authorisation Scheme is administered by the Central Board of Indirect Taxes and Customs (CBIC), whereas the EPCG Scheme is administered by the Directorate General of Foreign Trade (DGFT). 3. Under the EPCG Scheme, the specific export obligation is equivalent to six times the duties, taxes and cess saved on the capital goods, to be fulfilled within six years from the date of issue of the authorisation. Which of the statements given above is/are correct?

  1. Under the EPCG Scheme, capital goods can be imported at zero customs duty, whereas under the Advance Authorisation Scheme, inputs physically incorporated in export products are allowed to be imported duty-free.
  2. The Advance Authorisation Scheme is administered by the Central Board of Indirect Taxes and Customs (CBIC), whereas the EPCG Scheme is administered by the Directorate General of Foreign Trade (DGFT).
  3. Under the EPCG Scheme, the specific export obligation is equivalent to six times the duties, taxes and cess saved on the capital goods, to be fulfilled within six years from the date of issue of the authorisation.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. Which one of the following was the first Comprehensive Economic Cooperation Agreement (CECA) signed by India with another country?

  • A. India-Malaysia CECA
  • B. India-Singapore CECA
  • C. India-Japan CEPA
  • D. India-Republic of Korea CEPA

Q13. With reference to the different categories of trade agreements that India enters into, consider the following statements: 1. A Preferential Trade Agreement (PTA) operates on a 'positive list' of products on which tariffs are reduced, whereas a Free Trade Agreement (FTA) typically operates on a 'negative list' of items excluded from tariff liberalisation. 2. A Comprehensive Economic Partnership Agreement (CEPA) is wider in scope than an FTA as it covers trade in services, investment and rule-making areas such as intellectual property and government procurement. 3. Under a Customs Union, member countries eliminate tariffs among themselves, but each member retains its own independent external tariff against non-member countries. Which of the statements given above is/are correct?

  1. A Preferential Trade Agreement (PTA) operates on a 'positive list' of products on which tariffs are reduced, whereas a Free Trade Agreement (FTA) typically operates on a 'negative list' of items excluded from tariff liberalisation.
  2. A Comprehensive Economic Partnership Agreement (CEPA) is wider in scope than an FTA as it covers trade in services, investment and rule-making areas such as intellectual property and government procurement.
  3. Under a Customs Union, member countries eliminate tariffs among themselves, but each member retains its own independent external tariff against non-member countries.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q14. Among the sectors notified under the Production Linked Incentive (PLI) Schemes for 14 key sectors, which one has the LARGEST individual financial outlay?

  • A. Automobiles and Auto Components
  • B. Large Scale Electronics Manufacturing (Mobile Phones and Specified Electronic Components)
  • C. Advanced Chemistry Cell (ACC) Battery Storage
  • D. High Efficiency Solar PV Modules

Q15. With reference to the Production Linked Incentive (PLI) Schemes notified by the Government of India for 14 key sectors under the Atmanirbhar Bharat initiative, consider the following sectors: 1. Specialty Steel 2. Petroleum Refining 3. Drones and Drone Components 4. Civil Aviation Maintenance, Repair and Overhaul (MRO) Which of the above is/are correctly identified as sectors covered under the PLI Schemes for 14 key sectors?

  1. Specialty Steel
  2. Petroleum Refining
  3. Drones and Drone Components
  4. Civil Aviation Maintenance, Repair and Overhaul (MRO)
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3
  • D. 1, 3 and 4