UPSC Prelims Practice Questions — Texprocil rejects USTR claims on Indian cotton textiles

Q1. With reference to Section 301 of the US Trade Act, 1974, which one of the following statements most accurately describes its function?

  • A. It empowers the US Trade Representative to investigate and act against foreign acts, policies or practices deemed unreasonable or discriminatory that burden or restrict US commerce
  • B. It authorises the US President to impose emergency anti-dumping duties without any prior investigation by any agency
  • C. It obliges the US to refer all unfair-trade complaints directly to the WTO Dispute Settlement Body for binding adjudication
  • D. It permits the US Treasury to designate trading partners as currency manipulators and levy countervailing duties on them

Q2. Consider the following statements comparing the earlier use of Section 301 against China with the 2026 Section 301 investigations involving India: 1. The earlier Section 301 action against China chiefly targeted intellectual-property theft and forced technology transfer. 2. The 2026 investigations invoke Section 301 to examine structural excess capacity and failure to eradicate forced labour. 3. Both the earlier China action and the 2026 investigations are conducted and adjudicated by the WTO Dispute Settlement Body rather than by the USTR. Which of the statements given above is/are correct?

  1. The earlier Section 301 action against China chiefly targeted intellectual-property theft and forced technology transfer.
  2. The 2026 investigations invoke Section 301 to examine structural excess capacity and failure to eradicate forced labour.
  3. Both the earlier China action and the 2026 investigations are conducted and adjudicated by the WTO Dispute Settlement Body rather than by the USTR.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. With reference to Texprocil, which of the following are correctly identified? 1. It was the first Export Promotion Council set up in independent India. 2. It functions under the aegis of the Ministry of Textiles. 3. It represents exporters of cotton textiles, including yarns, fabrics and home textiles. 4. It is a statutory body created by a dedicated Act of Parliament. Which of the above is/are correctly identified?

  1. It was the first Export Promotion Council set up in independent India.
  2. It functions under the aegis of the Ministry of Textiles.
  3. It represents exporters of cotton textiles, including yarns, fabrics and home textiles.
  4. It is a statutory body created by a dedicated Act of Parliament.
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q4. Texprocil, the apex body that rejected the USTR's claims on Indian cotton textiles, was established in which year?

  • A. 1954
  • B. 1947
  • C. 1962
  • D. 1991

Q5. Which one of the following existing laws was NOT subsumed into the Code on Wages, 2019, but was instead folded into another of India's four Labour Codes?

  • A. The Industrial Disputes Act, 1947
  • B. The Minimum Wages Act, 1948
  • C. The Payment of Bonus Act, 1965
  • D. The Equal Remuneration Act, 1976

Q6. Among India's four Labour Codes, which one was the first to be enacted and notified?

  • A. The Code on Wages, 2019
  • B. The Industrial Relations Code, 2020
  • C. The Code on Social Security, 2020
  • D. The Occupational Safety, Health and Working Conditions Code, 2020

Q7. Consider the following statements about the two Section 301 investigations launched by the USTR in 2026: 1. The structural excess-capacity investigation covers around 16 economies, whereas the forced-labour investigation covers around 60. 2. India is included in both the excess-capacity and the forced-labour investigations. 3. The structural excess-capacity investigation is confined solely to textiles and apparel. Which of the statements given above is/are correct?

  1. The structural excess-capacity investigation covers around 16 economies, whereas the forced-labour investigation covers around 60.
  2. India is included in both the excess-capacity and the forced-labour investigations.
  3. The structural excess-capacity investigation is confined solely to textiles and apparel.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. The USTR's 2026 Section 301 investigation into structural excess capacity covers how many economies?

  • A. 16
  • B. 60
  • C. 54
  • D. 29

Q9. Which one of the following was the principal argument advanced by Texprocil in its 2026 submission rejecting the USTR's 'excess capacity' claim on Indian cotton textiles?

  • A. Over 80% of India's cotton textile output is consumed domestically, making the sector demand-driven rather than export-surplus
  • B. India's cotton textile output is wholly exported and therefore falls outside US jurisdiction entirely
  • C. India's cotton textiles are produced exclusively by large state-owned mills insulated from global demand
  • D. India's cotton textile capacity is entirely idle and hence cannot generate any surplus for export

Q10. The 2026 submission formally rejecting the USTR's 'excess capacity' and 'forced labour' claims on Indian cotton textiles was filed by which body?

  • A. Texprocil (Cotton Textiles Export Promotion Council)
  • B. Apparel Export Promotion Council (AEPC)
  • C. Confederation of Indian Textile Industry (CITI)
  • D. Southern India Mills' Association (SIMA)

Q11. With reference to India's textile and apparel trade, which of the following are correctly stated? 1. India's textile and apparel exports to the US were nearly US$11 billion in FY25. 2. These exports were about 28% of India's total textile and apparel exports. 3. India's share of global textile and apparel trade is about 3.9%. 4. India's per-capita textile consumption of 5.5 kg exceeds the global average. Which of the above is/are correctly stated?

  1. India's textile and apparel exports to the US were nearly US$11 billion in FY25.
  2. These exports were about 28% of India's total textile and apparel exports.
  3. India's share of global textile and apparel trade is about 3.9%.
  4. India's per-capita textile consumption of 5.5 kg exceeds the global average.
  • A. 1, 2 and 3
  • B. 2 and 4 only
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q12. In the context of India's textile export architecture, the Apparel Export Promotion Council (AEPC) is best described as —

  • A. the export promotion council for readymade garments and apparel
  • B. the export promotion council for cotton yarns, fabrics and made-ups
  • C. the export promotion council for manmade and technical textiles
  • D. a mill-owners' industry association based in southern India