UPSC Prelims Practice Questions — Is India prepared for the end of globalisation?

Question 1

Which one of the following was the first multilateral trade framework, signed in 1947, that established the rules-based order later institutionalised by the World Trade Organization?

Accepted Answer

The General Agreement on Tariffs and Trade (GATT)

Answer

The Bretton Woods Agreement

Answer

The Washington Consensus

Answer

The Multi-Party Interim Appeal Arbitration Arrangement (MPIA)

Question 2

The WTO's Multi-Party Interim Appeal Arbitration Arrangement (MPIA), used to review panel reports while the Appellate Body is non-functional, derives its legal basis from which provision of the Dispute Settlement Understanding (DSU)?

Accepted Answer

Article 25 (Arbitration)

Answer

Article 17 (Appellate Review)

Answer

Article 21.5 (Compliance)

Answer

Article 22 (Retaliation)

Question 3

During the 2025 India–US trade crisis, the cumulative US duty on Indian goods — a 'reciprocal' tariff stacked with a Russian-oil penalty tariff — peaked at what percentage before being reduced in February 2026?

Accepted Answer

50 per cent

Answer

18 per cent

Answer

25 per cent

Answer

75 per cent

Question 4

India's total exports (goods and services) in the financial year 2024–25 reached approximately how many billion US dollars?

Accepted Answer

825 billion

Answer

387 billion

Answer

550 billion

Answer

1,200 billion

Question 5

Among the three sectors for which the Production Linked Incentive (PLI) scheme was first launched in 2020, which one carried the largest incentive outlay?

Accepted Answer

Large-scale Electronics / Mobile Manufacturing

Answer

Bulk Drugs (KSM/Drug Intermediaries and APIs)

Answer

Medical Devices

Answer

Automobiles and Auto Components

Question 6

The Production Linked Incentive (PLI) scheme, central to India's Make in India and global value chain ambitions, has been announced for how many key sectors?

Accepted Answer

14 sectors

Answer

11 sectors

Answer

13 sectors

Answer

24 sectors

Question 7

According to the WTO's Global Trade Outlook and Statistics (March 2026), the projected 25 per cent decline in FDI is expected to be most concentrated in which category of sectors?

Accepted Answer

Tariff-exposed, global value chain-intensive sectors such as textiles, electronics and machinery

Answer

Agriculture, fisheries and mining

Answer

Banking and financial services

Answer

Real estate and construction

UPSC Prelims Practice Questions — Is India prepared for the end of globalisation?

Q1. Which one of the following was the first multilateral trade framework, signed in 1947, that established the rules-based order later institutionalised by the World Trade Organization?

Q2. The WTO's Multi-Party Interim Appeal Arbitration Arrangement (MPIA), used to review panel reports while the Appellate Body is non-functional, derives its legal basis from which provision of the Dispute Settlement Understanding (DSU)?

Q3. During the 2025 India–US trade crisis, the cumulative US duty on Indian goods — a 'reciprocal' tariff stacked with a Russian-oil penalty tariff — peaked at what percentage before being reduced in February 2026?

Q4. India's total exports (goods and services) in the financial year 2024–25 reached approximately how many billion US dollars?

Q5. Among the three sectors for which the Production Linked Incentive (PLI) scheme was first launched in 2020, which one carried the largest incentive outlay?

Q6. The Production Linked Incentive (PLI) scheme, central to India's Make in India and global value chain ambitions, has been announced for how many key sectors?

Q7. According to the WTO's Global Trade Outlook and Statistics (March 2026), the projected 25 per cent decline in FDI is expected to be most concentrated in which category of sectors?