UPSC Prelims Practice Questions — On global tensions and India’s economy

Q1. Approximately what share of its total crude oil requirement does India meet through imports?

  • A. About 50 per cent
  • B. About 65 per cent
  • C. About 90 per cent
  • D. About 100 per cent

Q2. Which one of the following maritime chokepoints handles roughly a fifth of global oil consumption and is the single most critical chokepoint for India's crude supply?

  • A. Strait of Malacca
  • B. Strait of Hormuz
  • C. Bab-el-Mandeb
  • D. Suez Canal

Q3. India's strategic crude oil reserves, used to buffer disruptions to Hormuz-linked supply, fall under the administrative purview of which Union Ministry?

  • A. Ministry of External Affairs
  • B. Ministry of Commerce and Industry
  • C. Ministry of Petroleum and Natural Gas
  • D. Ministry of Ports, Shipping and Waterways

Q4. The RBI's intervention in, and regulation of, dealings in the foreign exchange market is conducted primarily under the authority of which legislation?

  • A. Foreign Exchange Management Act, 1999
  • B. Banking Regulation Act, 1949
  • C. Securities and Exchange Board of India Act, 1992
  • D. Foreign Contribution (Regulation) Act, 2010

Q5. With reference to Foreign Portfolio Investment (FPI) flows in calendar year 2025, consider the following statements. Which of the above is/are correctly identified?

  1. FPIs recorded a record net outflow of about Rs 1.6 trillion from Indian equities.
  2. The debt segment attracted net FPI inflows during the year.
  3. The 2025 equity outflow surpassed the previous record set in 2022.
  4. FPIs remained net buyers of Indian equities in every month of the year.
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1 and 4 only

Q6. Which calendar year recorded the largest-ever annual net FPI outflow from Indian equities (as of 2025)?

  • A. 2008
  • B. 2020
  • C. 2022
  • D. 2025

Q7. During the 1991 balance-of-payments crisis, how many tonnes of gold did the RBI airlift to the Bank of England to raise foreign exchange?

  • A. 20 tonnes
  • B. 47 tonnes
  • C. 67 tonnes
  • D. 100 tonnes

Q8. In the context of India's coordination on the 2026 West Asia crisis, the abbreviation 'IGoM' stands for:

  • A. Informal Group of Ministers
  • B. Inter-Governmental Oil Mission
  • C. Indian Group on Maritime trade
  • D. International Gulf Oil Mechanism

Q9. Which entity, established as a Special Purpose Vehicle under the Ministry of Petroleum and Natural Gas, builds and maintains India's strategic crude oil reserves?

  • A. Oil and Natural Gas Corporation (ONGC)
  • B. Indian Strategic Petroleum Reserves Limited (ISPRL)
  • C. Indian Oil Corporation Limited (IOCL)
  • D. Oil India Limited (OIL)

Q10. By approximately how much does every $10 per barrel rise in the average crude oil price increase India's net oil import bill per year?

  • A. About $1.5-2 billion
  • B. About $5-6 billion
  • C. About $14-16 billion
  • D. About $30-35 billion