UPSC Prelims Practice Questions — Export gains
Q1. India's full-year current account deficit for FY 2025-26 (estimated at 0.6% of GDP) was compiled and released by which one of the following institutions?
- A. Reserve Bank of India, as part of its Balance of Payments data
- B. Directorate General of Commercial Intelligence and Statistics (DGCI&S)
- C. Department of Commerce, Ministry of Commerce and Industry
- D. National Statistical Office under MoSPI
Q2. With reference to India's merchandise trade deficit in June 2026, consider the following:
1. It stood at about US$30.43 billion.
2. It was the widest monthly deficit since January 2026.
3. It was a record for the month of June.
4. It was driven mainly by a collapse in merchandise exports.
Which of the above is/are NOT correct?
- It stood at about US$30.43 billion.
- It was the widest monthly deficit since January 2026.
- It was a record for the month of June.
- It was driven mainly by a collapse in merchandise exports.
- A. 4 only
- B. 1 and 4
- C. 3 only
- D. 2 and 3
Q3. With reference to India's foreign trade in June 2026, consider the following:
1. Merchandise exports rose 15.5% to about US$40.41 billion.
2. Merchandise imports rose about 31% to about US$70.84 billion.
3. Crude oil, electronics and precious metals were among the drivers of higher imports.
4. India's exports to West Asian countries fell sharply year-on-year.
Which of the above is/are correctly identified?
- Merchandise exports rose 15.5% to about US$40.41 billion.
- Merchandise imports rose about 31% to about US$70.84 billion.
- Crude oil, electronics and precious metals were among the drivers of higher imports.
- India's exports to West Asian countries fell sharply year-on-year.
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2 and 3 only
- D. 1, 2, 3 and 4
Q4. With reference to India's merchandise trade in FY 2025-26 (April-March), consider the following:
1. The merchandise trade deficit was about US$333.19 billion.
2. Cumulative exports of goods and services were about US$860.09 billion.
3. Combined goods-and-services exports grew about 4.22% over FY 2024-25.
4. The merchandise trade deficit was narrower than in FY 2024-25.
Which of the above is/are correctly identified?
- The merchandise trade deficit was about US$333.19 billion.
- Cumulative exports of goods and services were about US$860.09 billion.
- Combined goods-and-services exports grew about 4.22% over FY 2024-25.
- The merchandise trade deficit was narrower than in FY 2024-25.
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2 and 3 only
- D. 1, 2, 3 and 4
Q5. Among the following components of India's external trade in FY 2025-26, which one recorded the LARGEST value?
- A. Total imports of goods and services (about US$979.40 billion)
- B. Total exports of goods and services (about US$860.09 billion)
- C. Cumulative merchandise exports (about US$441.78 billion)
- D. Merchandise trade deficit (about US$333.19 billion)
Q6. With reference to the customs measures notified for electronics manufacturing in July 2026, consider the following statements:
1. Basic customs duty was waived on inputs used in manufacturing display assemblies, lithium-ion cells and inductor coil modules.
2. The exemption for the five specified display-assembly components was made valid up to 31 March 2029.
3. The measure raised basic customs duty on finished smartphones to protect domestic assemblers.
Which of the statements given above is/are correct?
- Basic customs duty was waived on inputs used in manufacturing display assemblies, lithium-ion cells and inductor coil modules.
- The exemption for the five specified display-assembly components was made valid up to 31 March 2029.
- The measure raised basic customs duty on finished smartphones to protect domestic assemblers.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q7. In the context of the July 2026 electronics notifications, the term 'Basic Customs Duty' most precisely refers to:
- A. A duty levied on imported goods under the Customs Tariff Act, computed on the assessable value of the goods
- B. A duty levied on goods manufactured within India at the point of their production
- C. A tax levied on the supply of goods and services consumed within India
- D. A levy imposed on exported goods to conserve domestic supply
Q8. In which year was the Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing notified?
- A. 2020
- B. 2016
- C. 2019
- D. 2022
Q9. The Production Linked Incentive (PLI) Scheme for Large Scale Electronics Manufacturing is implemented by which one of the following?
- A. Ministry of Electronics and Information Technology (MeitY)
- B. Department for Promotion of Industry and Internal Trade (DPIIT)
- C. Ministry of Commerce and Industry (Department of Commerce)
- D. Ministry of Heavy Industries
Q10. With reference to India's dependence on West Asia for energy and fertiliser inputs, consider the following:
1. India imports nearly 90% of its crude oil requirement.
2. Around 61% of India's LNG imports in 2024-25 came from West Asia.
3. West Asian countries supply over 45% of India's fertiliser imports.
4. India's domestic urea production is largely independent of imported natural gas.
Which of the above is/are correctly identified?
- India imports nearly 90% of its crude oil requirement.
- Around 61% of India's LNG imports in 2024-25 came from West Asia.
- West Asian countries supply over 45% of India's fertiliser imports.
- India's domestic urea production is largely independent of imported natural gas.
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2 and 3 only
- D. 1, 2, 3 and 4
Q11. During April-July of FY 2025-26, which one of the following recorded the LARGEST merchandise export value?
- A. Engineering goods
- B. Petroleum products
- C. Electronic goods
- D. Gems and jewellery