UPSC Prelims Practice Questions — The cumulative exports (merchandise & services) during April-May 2026-27 is estimated at US$ 162.69 Billion, as compared to US$ 141.89 Billion in April-May 2025-26, an estimated growth of 14.66%

Q1. With reference to India's external trade during April-May 2026-27 (as per the provisional data released by the Department of Commerce), consider the following statements: 1. The cumulative exports of merchandise and services were estimated at US$ 162.69 Billion. 2. The estimated year-on-year growth of cumulative exports was 14.66 per cent. 3. Merchandise exports during the period stood at US$ 88.91 Billion. 4. Total imports (merchandise and services) recorded a higher year-on-year growth rate than total exports during this period. Which of the statements given above is/are NOT correct?

  1. The cumulative exports of merchandise and services were estimated at US$ 162.69 Billion.
  2. The estimated year-on-year growth of cumulative exports was 14.66 per cent.
  3. Merchandise exports during the period stood at US$ 88.91 Billion.
  4. Total imports (merchandise and services) recorded a higher year-on-year growth rate than total exports during this period.
  • A. 1 only
  • B. 4 only
  • C. 2 and 3
  • D. 1 and 4

Q2. With reference to India's trade performance during April-May 2026-27 (provisional), consider the following statements: 1. Merchandise exports were estimated at US$ 88.91 Billion, registering a year-on-year growth of about 16.09 per cent. 2. The merchandise trade deficit widened to about US$ 56.44 Billion from about US$ 49.65 Billion in the corresponding period of the previous year. 3. The growth rate of cumulative exports (merchandise and services) was higher than the full-year cumulative export growth recorded in FY 2025-26. 4. Non-petroleum merchandise exports during the period contracted on a year-on-year basis. Which of the statements given above is/are correctly identified?

  1. Merchandise exports were estimated at US$ 88.91 Billion, registering a year-on-year growth of about 16.09 per cent.
  2. The merchandise trade deficit widened to about US$ 56.44 Billion from about US$ 49.65 Billion in the corresponding period of the previous year.
  3. The growth rate of cumulative exports (merchandise and services) was higher than the full-year cumulative export growth recorded in FY 2025-26.
  4. Non-petroleum merchandise exports during the period contracted on a year-on-year basis.
  • A. 1, 2 and 3 only
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1, 2, 3 and 4

Q3. In India's monthly foreign trade data releases by the Ministry of Commerce & Industry, which of the following best describes 'merchandise exports'?

  • A. Goods shipped from India valued on CIF basis, including in-transit re-exports through Indian ports
  • B. Physical goods exported from India valued on FOB basis, compiled by DGCI&S from customs documentation
  • C. Goods and software services exports taken together, net of returned consignments and drawbacks
  • D. Goods exports excluding petroleum products and gems & jewellery, valued on FOB basis

Q4. Among India's principal merchandise export commodities in May 2026, which one registered the highest year-on-year growth, according to the Ministry of Commerce & Industry?

  • A. Engineering Goods
  • B. Electronic Goods
  • C. Petroleum Products
  • D. Gems & Jewellery

Q5. The monthly merchandise trade figures (such as the April-May 2026-27 trade deficit of US$ 56.44 Billion) released by the Ministry of Commerce & Industry are compiled and disseminated by which one of the following organisations?

  • A. Directorate General of Commercial Intelligence and Statistics (DGCI&S), Kolkata
  • B. Directorate General of Foreign Trade (DGFT), New Delhi
  • C. National Statistical Office (NSO), New Delhi
  • D. Central Board of Indirect Taxes and Customs (CBIC), New Delhi

Q6. In the context of India's monthly trade data releases, the Directorate General of Commercial Intelligence and Statistics (DGCI&S) is best described as which one of the following?

  • A. An attached office of the Reserve Bank of India that compiles India's balance of payments statistics
  • B. A subordinate office under the Department of Commerce, headquartered at Kolkata, that compiles and disseminates India's merchandise trade statistics
  • C. An autonomous body under the Ministry of Statistics and Programme Implementation that releases the Index of Industrial Production
  • D. An attached office of the Department of Revenue that consolidates customs duty collections at sea ports, land ports and inland container depots

Q7. In the Ministry of Commerce & Industry's monthly press release on India's foreign trade, the estimates for services exports and imports are primarily sourced from which one of the following institutions?

  • A. Directorate General of Commercial Intelligence and Statistics, Kolkata
  • B. Directorate General of Foreign Trade, New Delhi
  • C. Reserve Bank of India
  • D. National Statistical Office under the Ministry of Statistics and Programme Implementation

Q8. Under the Foreign Trade Policy 2023, what does the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme provide to exporters?

  • A. Refund of embedded central, state and local duties/taxes on exported products that are otherwise non-recoverable
  • B. Subsidised interest on pre-shipment and post-shipment rupee export credit availed from scheduled banks
  • C. Duty-free import of capital goods used in the production of goods meant for export
  • D. Cash incentive equivalent to a fixed percentage of the FOB value of notified merchandise exports

Q9. The Foreign Trade Policy 2023 articulates its key approach on how many core pillars?

  • A. Three
  • B. Four
  • C. Five
  • D. Six

Q10. With reference to India's external trade, consider the following statements regarding cumulative exports (merchandise + services): Which of the statements given above is/are NOT correct?

  1. Total exports of India in FY 2025-26 (April-March) were estimated at about US$ 860 billion.
  2. Total exports of India in FY 2024-25 (April-March) stood at about US$ 825 billion.
  3. In FY 2025-26, services exports exceeded merchandise exports in value terms.
  4. India's total exports in FY 2025-26 grew by more than 10% over FY 2024-25.
  • A. 1 and 2 only
  • B. 3 and 4 only
  • C. 2 and 3 only
  • D. 1, 2 and 4 only

Q11. As of the end of FY 2025-26, in how many financial years has India's cumulative exports (merchandise + services combined) crossed the US$ 800 billion mark?

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

Q12. With reference to India's Balance of Payments, consider the following statements: 1. Merchandise trade transactions involve a change of ownership of goods, whereas services transactions in the current account do not necessarily entail such a transfer of ownership. 2. India's current account always records a deficit because the merchandise trade deficit invariably exceeds the surplus on the invisibles account. 3. Private remittances received from Indians working abroad are classified under the capital account of the Balance of Payments. Which of the statements given above is/are correct?

  1. Merchandise trade transactions involve a change of ownership of goods, whereas services transactions in the current account do not necessarily entail such a transfer of ownership.
  2. India's current account always records a deficit because the merchandise trade deficit invariably exceeds the surplus on the invisibles account.
  3. Private remittances received from Indians working abroad are classified under the capital account of the Balance of Payments.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q13. Within the 'services' sub-account of India's current account in the Balance of Payments, which one of the following constitutes the single largest component of gross export receipts?

  • A. Travel services
  • B. Transportation services
  • C. Computer and information services
  • D. Financial services

Q14. Following the India-US Interim Trade Agreement of February 2026, which one of the following countries faces the highest United States reciprocal tariff rate among the major Asian competing suppliers to the U.S. market?

  • A. Vietnam
  • B. Bangladesh
  • C. Indonesia
  • D. China