UPSC Prelims Practice Questions — ‘War may not impact FY26 pharma export’
Q1. With reference to the Pharmaceuticals Export Promotion Council of India (Pharmexcil), which one of the following best describes its institutional character?
- A. A statutory drug regulator that grants marketing approval for medicines manufactured in India
- B. An Export Promotion Council set up under the Foreign Trade Policy by the Ministry of Commerce & Industry to promote pharmaceutical exports
- C. A public sector undertaking under the Department of Pharmaceuticals that manufactures and exports generic drugs
- D. An autonomous body under the Ministry of Health & Family Welfare that certifies vaccines for export
Q2. Which one of the following is the principal financial-assistance scheme through which Pharmexcil supports its member exporters (especially SMEs) in participating in international trade fairs and exhibitions?
- A. Production Linked Incentive (PLI) scheme
- B. Market Development Assistance (MDA) scheme
- C. Remission of Duties and Taxes on Exported Products (RoDTEP)
- D. Merchandise Exports from India Scheme (MEIS)
Q3. Consider the following statements comparing India's pharmaceutical export performance across years:
1. India's pharmaceutical exports in FY25 stood at about $30.47 billion, higher than in the previous year.
2. The Government's export target for FY26 was set at $32 billion, which was exactly achieved.
3. The Government has set a target of $50 billion in pharmaceutical exports by 2030.
Which of the statements given above is/are correct?
- India's pharmaceutical exports in FY25 stood at about $30.47 billion, higher than in the previous year.
- The Government's export target for FY26 was set at $32 billion, which was exactly achieved.
- The Government has set a target of $50 billion in pharmaceutical exports by 2030.
- A. 1 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q4. The following are figures associated with India's pharmaceutical export trajectory:
1. FY25 pharmaceutical exports — about $30.47 billion
2. FY25 year-on-year export growth — about 9.4%
3. FY26 full-year pharmaceutical exports — about $31 billion
4. FY26 export target — $65 billion
Which one of the above is NOT correctly identified?
- FY25 pharmaceutical exports — about $30.47 billion
- FY25 year-on-year export growth — about 9.4%
- FY26 full-year pharmaceutical exports — about $31 billion
- FY26 export target — $65 billion
- A. 1 only
- B. 3 only
- C. 4 only
- D. 2 and 3
Q5. According to Pharmexcil's March 2026 assessment, disruption to shipping routes in which one of the following regions posed the single largest threat to India's FY26 pharmaceutical exports?
- A. West Asia (the Middle East)
- B. The South China Sea
- C. The Gulf of Mexico
- D. The Baltic Sea
Q6. Consider the following statements about the March 2026 West Asia disruption and its estimated impact on Indian pharmaceutical exports:
1. Pharmexcil estimated the disruption could cost the industry between ₹2,500 crore and ₹5,000 crore (about $300–600 million) if it continued through March 2026.
2. West Asia accounts for roughly 5.6% of India's total pharmaceutical exports.
3. The disruption arose because freight charges on the affected routes had roughly halved, lowering exporters' costs.
Which of the statements given above is/are correct?
- Pharmexcil estimated the disruption could cost the industry between ₹2,500 crore and ₹5,000 crore (about $300–600 million) if it continued through March 2026.
- West Asia accounts for roughly 5.6% of India's total pharmaceutical exports.
- The disruption arose because freight charges on the affected routes had roughly halved, lowering exporters' costs.
- A. 1 and 2 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q7. With reference to India's position in the global pharmaceutical industry, consider the following statements:
1. India is the third largest producer of pharmaceuticals in the world by volume.
2. India supplies about 40% of the generic-drug demand of the United States.
3. India produces more than 50% of the world's vaccines.
4. India is the largest pharmaceutical producer in the world by value.
Which of the statements given above are correct?
- India is the third largest producer of pharmaceuticals in the world by volume.
- India supplies about 40% of the generic-drug demand of the United States.
- India produces more than 50% of the world's vaccines.
- India is the largest pharmaceutical producer in the world by value.
- A. 1, 2 and 3
- B. 2 and 4 only
- C. 1 and 4 only
- D. 1, 2, 3 and 4
Q8. India is often described as the 'pharmacy of the world.' Which one of the following statements most accurately captures the basis of this description?
- A. India supplies roughly one-fifth of the global demand for generic medicines and exports pharmaceuticals to over 200 countries
- B. India became the world's largest pharmaceutical market by sales value in 2020
- C. India manufactures the majority of the world's patented, branded blockbuster drugs
- D. India meets its entire domestic medicine demand solely through imports
Q9. By approximately how much did US buyers front-load procurement of Indian medicines in March 2025, above normal levels, ahead of the changing US tariff regime?
- A. $0.5 billion
- B. $1.6 billion
- C. $3.2 billion
- D. $10.5 billion
Q10. Which one of the following is the single largest destination market for India's pharmaceutical exports?
- A. The United States
- B. Germany
- C. South Africa
- D. The United Arab Emirates
Q11. The Registration-Cum-Membership Certificate (RCMC), which exporters must hold to avail benefits under the Foreign Trade Policy, is issued to pharmaceutical exporters primarily by which one of the following?
- A. The Reserve Bank of India
- B. The relevant Export Promotion Council (such as Pharmexcil) / FIEO under the Foreign Trade Policy
- C. The Central Board of Indirect Taxes and Customs (CBIC)
- D. The Department of Pharmaceuticals
Q12. The following are described as effects of the 2026 Red Sea / West Asia shipping disruption on global trade:
1. Container vessels were rerouted around Africa's Cape of Good Hope, lengthening transit times.
2. Freight and surcharge costs on the affected routes rose sharply.
3. Asia–Europe container freight rates ran well above pre-crisis levels.
4. The Suez Canal was permanently closed to all traffic and demolished during 2026.
Which one of the above is NOT correctly identified?
- Container vessels were rerouted around Africa's Cape of Good Hope, lengthening transit times.
- Freight and surcharge costs on the affected routes rose sharply.
- Asia–Europe container freight rates ran well above pre-crisis levels.
- The Suez Canal was permanently closed to all traffic and demolished during 2026.
- A. 1 only
- B. 2 only
- C. 3 only
- D. 4 only