UPSC Prelims Practice Questions — Ambiguities in the U.S.-India trade deal

Q1. With reference to India's tariff and non-tariff barrier commitments under the framework for the U.S.–India Interim Trade Agreement announced in February 2026, consider the following U.S. exports: 1. Dried distillers' grains (DDGs) 2. Red sorghum 3. Basmati rice 4. Soybean oil Which of the above is/are correctly identified as items on which India has agreed to eliminate or reduce tariffs?

  1. Dried distillers' grains (DDGs)
  2. Red sorghum
  3. Basmati rice
  4. Soybean oil
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4

Q2. In the context of India's concessions under the U.S.–India Interim Trade Agreement framework (February 2026), the term 'DDGs' refers to:

  • A. Dried distillers' grains, a co-product of grain-based ethanol production used primarily as animal feed
  • B. Differential Development Grants extended by USAID to Indian agri-clusters
  • C. Diversified Dairy Goods covered under a WTO tariff-rate-quota schedule
  • D. Defence Dual-use Goods listed under the U.S. Arms Export Control Act

Q3. Under the framework for the U.S.–India Interim Trade Agreement announced in February 2026, the United States agreed to set its reciprocal tariff on the bulk of covered Indian goods at which single rate (down from the prevailing 50%)?

  • A. 10 per cent
  • B. 15 per cent
  • C. 18 per cent
  • D. 25 per cent

Q4. The Bilateral Trade Agreement (BTA) negotiations between India and the United States, whose first concrete output was the February 2026 Interim Trade Agreement framework, were formally launched in which year?

  • A. 2019
  • B. 2023
  • C. 2025
  • D. 2026

Q5. With reference to the commitments made by India under the framework for the U.S.–India Interim Trade Agreement (February 2026), consider the following: 1. Elimination or reduction of tariffs on all U.S. industrial goods. 2. Commitment to stop, directly or indirectly, importing Russian Federation crude oil. 3. Signalled purchases of U.S. energy, information and communication technology, and coal products. 4. Grant of Most-Favoured-Nation (MFN) status to the United States for the first time under the WTO framework. Which of the above is/are NOT correctly identified as a commitment under the framework?

  1. Elimination or reduction of tariffs on all U.S. industrial goods.
  2. Commitment to stop, directly or indirectly, importing Russian Federation crude oil.
  3. Signalled purchases of U.S. energy, information and communication technology, and coal products.
  4. Grant of Most-Favoured-Nation (MFN) status to the United States for the first time under the WTO framework.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 4 only
  • D. 4 only
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