UPSC Prelims Practice Questions — Indian economy, govt. finances, see mounting costs from Iran war
Q1. As of 2026, approximately what proportion of India's crude oil requirement is met through imports?
- A. About 60%
- B. About 75%
- C. About 88%
- D. Over 98%
Q2. As of 2026, which one of the following is the single largest source country of India's crude oil imports?
- A. Saudi Arabia
- B. Iraq
- C. United Arab Emirates
- D. Russia
Q3. With reference to India's exposure to the 2026 Iran war / Strait of Hormuz crisis, consider the following statements:
1. India imports nearly 88% of its crude oil requirement.
2. India is the world's largest importer of crude oil.
3. Around half of India's crude oil imports were transiting through the Strait of Hormuz at the onset of the crisis.
4. 'Operation Urja Suraksha' was launched by the Indian Air Force to airlift fuel from Gulf depots.
Which of the statements given above are NOT correct?
- India imports nearly 88% of its crude oil requirement.
- India is the world's largest importer of crude oil.
- Around half of India's crude oil imports were transiting through the Strait of Hormuz at the onset of the crisis.
- 'Operation Urja Suraksha' was launched by the Indian Air Force to airlift fuel from Gulf depots.
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1, 2 and 4
- D. 3 only
Q4. In the context of the 2026 Iran war, what is 'Operation Urja Suraksha'?
- A. An Indian Navy operation deploying warships to escort Indian-flagged cargo vessels through the Persian Gulf and adjoining waters
- B. An RBI programme of forex swaps to defend the rupee against oil-driven depreciation
- C. A Petroleum Ministry plan to draw down the Strategic Petroleum Reserve to cap retail fuel prices
- D. A joint India–US–UK naval coalition for securing freedom of navigation in the Strait of Hormuz
Q5. With reference to the Reserve Bank of India's response to oil-price and rupee pressures during the 2026 Iran war, consider the following measures:
1. A USD/INR buy-sell swap auction to inject dollar liquidity into the system.
2. Sale of dollars from foreign exchange reserves to defend the rupee.
3. Imposition of capital controls on outbound foreign direct investment by Indian firms.
4. Formal suspension of all rupee-internationalisation initiatives such as Special Vostro Rupee Accounts.
Which of the statements given above are correct?
- A USD/INR buy-sell swap auction to inject dollar liquidity into the system.
- Sale of dollars from foreign exchange reserves to defend the rupee.
- Imposition of capital controls on outbound foreign direct investment by Indian firms.
- Formal suspension of all rupee-internationalisation initiatives such as Special Vostro Rupee Accounts.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1, 3 and 4
- D. 3 and 4 only