UPSC Prelims Practice Questions — U.S. deal excludes sensitive sectors: Goyal

Q1. With reference to how the India–U.S. Interim Trade Agreement (February 2026) differs from the tariff situation that prevailed immediately before it, consider the following statements: 1. The U.S. 'reciprocal' tariff on Indian goods was reduced from 25% to 18% under the interim deal. 2. The additional 25% 'penalty' tariff that the U.S. had imposed on India over its Russian crude purchases was retained, though at a lower rate, under the interim framework. 3. Unlike earlier (pre-2026) attempts at a limited trade package, the 2026 interim framework grants U.S. dairy and agricultural products tariff concessions in the Indian market. Which of the statements given above is/are correct?

  1. The U.S. 'reciprocal' tariff on Indian goods was reduced from 25% to 18% under the interim deal.
  2. The additional 25% 'penalty' tariff that the U.S. had imposed on India over its Russian crude purchases was retained, though at a lower rate, under the interim framework.
  3. Unlike earlier (pre-2026) attempts at a limited trade package, the 2026 interim framework grants U.S. dairy and agricultural products tariff concessions in the Indian market.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. Which of the following Union Ministers, in his capacity as Minister of Commerce and Industry, publicly confirmed in February 2026 that agriculture, dairy and other 'sensitive' sectors had been kept outside the India–U.S. Interim Trade Agreement?

  • A. Nirmala Sitharaman
  • B. S. Jaishankar
  • C. Piyush Goyal
  • D. Shivraj Singh Chouhan

Q3. Which one of the following Union Ministries is the nodal ministry on the Indian side that negotiated and operationalises the India–U.S. Interim Trade Agreement (February 2026)?

  • A. Ministry of External Affairs
  • B. Ministry of Finance
  • C. Ministry of Agriculture and Farmers Welfare
  • D. Ministry of Commerce and Industry

Q4. The additional 25% 'penalty' tariff on Indian imports — originally imposed on account of India's purchases of Russian crude — was eliminated in February 2026 through an instrument signed by which of the following authorities?

  • A. The United States Trade Representative (USTR)
  • B. The U.S. Secretary of Commerce
  • C. The U.S. Secretary of the Treasury
  • D. The President of the United States, by Executive Order
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