UPSC Prelims Practice Questions — Trade between BRICS countries shows marked increase

Q1. With reference to how the enlargement of BRICS in 2025 differed from its earlier enlargement, consider the following statements: 1. South Africa's admission in 2010 was the grouping's first enlargement after formal cooperation began, whereas the 2025 round admitted Indonesia while also creating a category of 'partner countries'. 2. Indonesia, like South Africa earlier, was admitted only as a partner country and was granted full membership subsequently. 3. Kazakhstan and Nigeria hold partner-country status in the grouping, unlike Egypt and Ethiopia, which are full members. Which of the statements given above is/are correct?

  1. South Africa's admission in 2010 was the grouping's first enlargement after formal cooperation began, whereas the 2025 round admitted Indonesia while also creating a category of 'partner countries'.
  2. Indonesia, like South Africa earlier, was admitted only as a partner country and was granted full membership subsequently.
  3. Kazakhstan and Nigeria hold partner-country status in the grouping, unlike Egypt and Ethiopia, which are full members.
  • A. 1 only
  • B. 1 and 2 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. Consider the following statements regarding the status of countries in BRICS as of 2026: 1. Iran is a full member of BRICS, having been admitted in the 2024 enlargement. 2. Vietnam is associated with BRICS as a partner country and not as a full member. 3. Argentina has been a full member of BRICS since the 2024 enlargement. 4. The United Arab Emirates is associated with BRICS as a partner country and has not taken up full membership. Which of the statements given above is/are correct?

  1. Iran is a full member of BRICS, having been admitted in the 2024 enlargement.
  2. Vietnam is associated with BRICS as a partner country and not as a full member.
  3. Argentina has been a full member of BRICS since the 2024 enlargement.
  4. The United Arab Emirates is associated with BRICS as a partner country and has not taken up full membership.
  • A. 1 and 2
  • B. 2 and 4
  • C. 1, 3 and 4
  • D. 3 only

Q3. Which one of the following correctly describes the standing of the BRICS+ grouping in world merchandise exports relative to the G7, on the latest available data?

  • A. BRICS+ exports crossed one-half of world merchandise exports in 2024, exceeding the combined share of the G7 economies and the European Union
  • B. BRICS+ had already overtaken the G7 by 2023, accounting for 28.9 per cent of world merchandise exports against the G7's 23.3 per cent
  • C. BRICS+ exports were about one-fourth of world merchandise exports in 2024, a share that was still below that of the G7 as of 2023
  • D. BRICS+ remained below 15 per cent of world merchandise exports in 2023, virtually unchanged from its share at the beginning of the century

Q4. Under India's BRICS Chairship 2026, the 16th BRICS Trade Ministers' Meeting at Jaipur, which adopted the 'Jaipur Consensus' on a BRICS invoice-discounting mechanism, was chaired by the Union Minister heading which one of the following ministries?

  • A. Ministry of Finance, which handles the BRICS Contingent Reserve Arrangement track
  • B. Ministry of Commerce and Industry, which handles the BRICS trade and investment track
  • C. Ministry of External Affairs, which handles the BRICS sherpa and summit track
  • D. Ministry of Micro, Small and Medium Enterprises, which handles the BRICS small-business track

Q5. In the context of BRICS, the 'Chairship' being exercised by India in 2026 is best described as which one of the following?

  • A. A permanent presiding role vested in the member holding the largest share of the New Development Bank's authorised capital
  • B. An executive office empowered to admit new members and partner countries without requiring the concurrence of other members
  • C. A two-year term held jointly by the founding members, during which the decisions of the grouping become legally binding on all members
  • D. A responsibility rotating annually among members, under which the chair hosts the leaders' summit and steers the year's ministerial and working-group calendar

Q6. Under India's BRICS Chairship 2026, the BRICS Ministerial Meeting on Disaster Risk Reduction held in New Delhi was hosted by which one of the following?

  • A. The National Institute of Disaster Management, functioning under the Ministry of Earth Sciences
  • B. The National Disaster Management Authority, functioning under the Ministry of Home Affairs
  • C. The National Crisis Management Committee, functioning under the Cabinet Secretariat
  • D. The National Remote Sensing Centre, functioning under the Department of Space

Q7. In the BRICS discussions on reducing dollar dependence, the 'correspondent banking' arrangement that the grouping seeks to bypass refers to which one of the following?

  • A. An arrangement under which two central banks exchange their currencies with each other to meet short-term balance of payments pressures
  • B. The linking of the central bank digital currencies of two countries so that payments between their residents settle instantaneously
  • C. An arrangement in which a bank holds accounts with banks abroad, so that a cross-border payment is routed through an intermediary bank and typically settled in a third, vehicle currency
  • D. Direct settlement between the exporter's bank and the importer's bank in each other's national currencies, with no intermediary institution involved

Q8. As stated by India's Commerce Secretary in 2026, intra-BRICS trade currently accounts for approximately what share of global trade?

  • A. Around 5 per cent
  • B. Around 23 per cent
  • C. Around 29 per cent
  • D. Around 40 per cent

Q9. The technical framework proposed by the Reserve Bank of India for the BRICS payments agenda envisages, at the outset, the linking of the central bank digital currencies of how many BRICS members?

  • A. Three
  • B. Five
  • C. Nine
  • D. Eleven

Q10. Which one of the following correctly states the status of the proposed BRICS cross-border payments mechanism?

  • A. It has been adopted as a binding treaty obligation on all BRICS members and replaces existing messaging arrangements for all intra-bloc trade
  • B. It is operated by the New Development Bank, which has been designated the exclusive settlement agent for all trade among BRICS members
  • C. It remains at the discussion stage among BRICS central banks, with options including linkages between payment systems and central bank digital currencies
  • D. It was launched under the Contingent Reserve Arrangement, which requires that all trade among members be invoiced in a single common BRICS currency

Q11. With reference to the financial institutions of BRICS, consider the following statements: 1. The New Development Bank was established under an agreement concluded in 2014 and is headquartered in Shanghai. 2. The Contingent Reserve Arrangement provides mutual support through currency swaps in response to actual or potential short-term balance of payments pressures. 3. The Contingent Reserve Arrangement requires each founding member to commit an equal share of its resources, exactly as in the capital structure of the New Development Bank. 4. The founding BRICS members pooled US$ 100 billion as the authorised capital of the New Development Bank, each holding an equal stake in it. Which of the statements given above is/are NOT correct?

  1. The New Development Bank was established under an agreement concluded in 2014 and is headquartered in Shanghai.
  2. The Contingent Reserve Arrangement provides mutual support through currency swaps in response to actual or potential short-term balance of payments pressures.
  3. The Contingent Reserve Arrangement requires each founding member to commit an equal share of its resources, exactly as in the capital structure of the New Development Bank.
  4. The founding BRICS members pooled US$ 100 billion as the authorised capital of the New Development Bank, each holding an equal stake in it.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q12. Consider the following statements comparing India's 2026 BRICS chairship with earlier chairships of the grouping: 1. The 2026 chairship is the fourth occasion on which India chairs BRICS, its earlier turns having come in 2012, 2016 and 2021. 2. India took over the chairship from Brazil, which had hosted the immediately preceding leaders' summit at Rio de Janeiro. 3. India retained for 2026 the same overarching theme under which Brazil had conducted the preceding chairship year. Which of the statements given above is/are correct?

  1. The 2026 chairship is the fourth occasion on which India chairs BRICS, its earlier turns having come in 2012, 2016 and 2021.
  2. India took over the chairship from Brazil, which had hosted the immediately preceding leaders' summit at Rio de Janeiro.
  3. India retained for 2026 the same overarching theme under which Brazil had conducted the preceding chairship year.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3