UPSC Prelims Practice Questions — Decoding India’s growth in merchandise exports

Q1. Consider the following statements comparing India's merchandise trade in July 2026 with July 2025: 1. Merchandise exports crossed US$ 44 billion in July 2026, against under US$ 37 billion in July 2025. 2. The merchandise trade deficit stood at about US$ 32 billion in July 2026, higher than the roughly US$ 28 billion recorded in July 2025. 3. The entire year-on-year increase in export earnings came from higher export volumes, global prices having played no part whatsoever in it. Which of the statements given above is/are correct?

  1. Merchandise exports crossed US$ 44 billion in July 2026, against under US$ 37 billion in July 2025.
  2. The merchandise trade deficit stood at about US$ 32 billion in July 2026, higher than the roughly US$ 28 billion recorded in July 2025.
  3. The entire year-on-year increase in export earnings came from higher export volumes, global prices having played no part whatsoever in it.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. India's merchandise exports in July 2026 were about US$ 7.26 billion higher than in July 2025. Which one of the following commodity groups accounted for the single largest share of this incremental export value?

  • A. Engineering goods, which supplied roughly one-fourth of the incremental export value
  • B. Petroleum products, which supplied close to two-fifths of the incremental export value
  • C. Electronic goods, which supplied close to three-tenths of the incremental export value
  • D. Drugs and pharmaceuticals, which supplied close to one-fifth of the incremental export value

Q3. The classification and monthly reporting of 'petroleum products' as a principal commodity group within India's merchandise export basket is carried out by which one of the following?

  • A. The Ministry of Petroleum and Natural Gas, which alone certifies every export consignment of refined fuels leaving India
  • B. The Reserve Bank of India, which is the exclusive compiler of all of India's merchandise trade statistics
  • C. The Ministry of Commerce and Industry, through the Department of Commerce and its trade statistics establishment
  • D. The Ministry of Finance, whose customs wing is the sole authority permitted to publish India's export data

Q4. Which one of the following correctly describes India's standing in global petroleum refining and in the export of refined petroleum products, as officially stated in October 2025?

  • A. The world's largest refining nation and simultaneously the largest exporter of refined petroleum products
  • B. The world's fourth-largest refining nation and among the top seven exporters of refined petroleum products
  • C. The world's second-largest refining nation and among the top three exporters of refined petroleum products
  • D. The world's sixth-largest refining nation and among the top ten exporters of refined petroleum products

Q5. Amid the disruption of West Asian shipping routes in 2026, the Government stated that India now procures crude oil from approximately how many countries?

  • A. About 20
  • B. About 30
  • C. About 40
  • D. About 55

Q6. Securing and diversifying India's crude oil import sources, including the re-routing of cargoes away from the Strait of Hormuz during West Asian disruptions, falls within the administrative remit of which one of the following?

  • A. The Ministry of External Affairs, which negotiates India's bilateral energy supply arrangements abroad
  • B. The Ministry of Ports, Shipping and Waterways, which administers India's maritime and port infrastructure
  • C. The Ministry of Commerce and Industry, which compiles and releases India's monthly foreign trade data
  • D. The Ministry of Petroleum and Natural Gas, which oversees India's crude sourcing and refining public sector undertakings

Q7. Which one of the following is the principal agency for the compilation and dissemination of India's official merchandise trade statistics, including the trade indices series?

  • A. The Directorate General of Foreign Trade, which frames and administers India's foreign trade policy
  • B. The Directorate General of Commercial Intelligence and Statistics, an office under the Ministry of Commerce and Industry
  • C. The Directorate General of Trade Remedies, which investigates anti-dumping and safeguard measures
  • D. The National Statistical Office, functioning under the Ministry of Statistics and Programme Implementation

Q8. With reference to the revised series of India's merchandise trade indices with base year 2022-23, consider the following: 1. Export and Import Unit Value Indices 2. Quantity (Quantum) Indices derived from Value and Unit Value Indices 3. Terms of Trade Indices, covering Gross, Net and Income variants 4. Wholesale Price Index for manufactured products Which of the above is/are correctly identified as components of this revised trade indices series?

  1. Export and Import Unit Value Indices
  2. Quantity (Quantum) Indices derived from Value and Unit Value Indices
  3. Terms of Trade Indices, covering Gross, Net and Income variants
  4. Wholesale Price Index for manufactured products
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q9. Consider the following statements regarding India's external trade in FY 2025-26 as compared with FY 2024-25: 1. India's overall trade deficit, taking goods and services together, narrowed in FY 2025-26 relative to the preceding year. 2. Total exports of merchandise and services taken together were about US$ 860 billion in FY 2025-26, up from about US$ 825 billion a year earlier. 3. Merchandise exports grew by less than one per cent in FY 2025-26, whereas services exports grew by close to eight per cent. Which of the statements given above is/are correct?

  1. India's overall trade deficit, taking goods and services together, narrowed in FY 2025-26 relative to the preceding year.
  2. Total exports of merchandise and services taken together were about US$ 860 billion in FY 2025-26, up from about US$ 825 billion a year earlier.
  3. Merchandise exports grew by less than one per cent in FY 2025-26, whereas services exports grew by close to eight per cent.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 1, 2 and 3
  • D. 2 and 3 only

Q10. With reference to India's external trade account for FY 2025-26, consider the following: 1. Merchandise exports of about US$ 441.78 billion 2. Services exports of about US$ 418.31 billion 3. Merchandise trade deficit of about US$ 333.19 billion 4. Services trade surplus of about US$ 119.30 billion Which of the above is/are correctly identified?

  1. Merchandise exports of about US$ 441.78 billion
  2. Services exports of about US$ 418.31 billion
  3. Merchandise trade deficit of about US$ 333.19 billion
  4. Services trade surplus of about US$ 119.30 billion
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3
  • D. 3 and 4 only

Q11. With reference to the composition of India's export basket in FY 2025-26, consider the following: 1. Engineering goods, at about US$ 122 billion, formed the single largest merchandise export group, accounting for nearly 28 per cent of merchandise exports. 2. Electronic goods exports stood at about US$ 48 billion, recording growth of over 20 per cent. 3. Pharmaceutical exports stood at about US$ 31 billion. 4. The share of services in India's total exports declined from 48 per cent in 2009-10 to 35 per cent in 2025-26. Which of the above is/are correctly identified?

  1. Engineering goods, at about US$ 122 billion, formed the single largest merchandise export group, accounting for nearly 28 per cent of merchandise exports.
  2. Electronic goods exports stood at about US$ 48 billion, recording growth of over 20 per cent.
  3. Pharmaceutical exports stood at about US$ 31 billion.
  4. The share of services in India's total exports declined from 48 per cent in 2009-10 to 35 per cent in 2025-26.
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 3 and 4 only

Q12. Consider the following statements regarding India's refining sector and crude oil imports: 1. India's refining capacity, at about 258 MMTPA in 2025, is targeted to rise to about 310 MMTPA by 2030. 2. The increase in the share of India's crude oil imports arriving through routes outside the Strait of Hormuz, from about 55 per cent earlier to about 70 per cent by 2026, was reported by the Ministry of Ports, Shipping and Waterways. 3. India's exports of petroleum products were valued at about US$ 45 billion in FY 2024-25. Which of the statements given above is/are correct?

  1. India's refining capacity, at about 258 MMTPA in 2025, is targeted to rise to about 310 MMTPA by 2030.
  2. The increase in the share of India's crude oil imports arriving through routes outside the Strait of Hormuz, from about 55 per cent earlier to about 70 per cent by 2026, was reported by the Ministry of Ports, Shipping and Waterways.
  3. India's exports of petroleum products were valued at about US$ 45 billion in FY 2024-25.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3