UPSC Prelims Practice Questions — No excuses left for textiles sector, says Goyal on tariffs

Q1. Under the India-US Trade Agreement announced in 2026, which one of the following Indian textile export categories was granted the deepest concession, namely completely duty-free entry into the United States market?

  • A. Readymade garments, which form the single largest slice of India's textile export basket
  • B. Cotton textiles, including yarn, bed linen and blankets shipped from Indian mills
  • C. Silk, which enters the United States market at a zero rate of duty
  • D. Carpets and floor coverings, a traditional handicraft-linked export line

Q2. With reference to the tariff structure applicable to textile imports into the United States following the India-US Trade Agreement of 2026, consider the following statements: 1. All Indian textile and apparel categories covered by the agreement had their United States tariff reduced from 50% to 18%. 2. Textile imports from China continue to attract a United States tariff of 35%. 3. Textile imports from Vietnam attract a United States tariff of 25%. 4. Textile imports from Bangladesh attract a United States tariff of 20%. Which of the statements given above is/are NOT correct?

  1. All Indian textile and apparel categories covered by the agreement had their United States tariff reduced from 50% to 18%.
  2. Textile imports from China continue to attract a United States tariff of 35%.
  3. Textile imports from Vietnam attract a United States tariff of 25%.
  4. Textile imports from Bangladesh attract a United States tariff of 20%.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 3 and 4
  • D. 2 only

Q3. Which one of the following bodies carries out the triennial review that determines inclusion in, and graduation from, the United Nations list of Least Developed Countries?

  • A. The Trade and Development Board of the United Nations Conference on Trade and Development
  • B. The Committee for Development Policy, a subsidiary body of the Economic and Social Council
  • C. The Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States
  • D. The Sub-Committee on Least Developed Countries of the World Trade Organization's Committee on Trade and Development

Q4. As reported by the Ministry of Textiles for the year 2024, what was India's position in the ranking of the world's largest exporters of textiles and apparel?

  • A. Second largest exporter, next only to China in shipment value
  • B. Fourth largest exporter, ahead of Bangladesh and Vietnam in value terms
  • C. Sixth largest exporter, with about 4.1% of global textile and apparel trade
  • D. Eighth largest exporter, with under 2% of world trade in the sector

Q5. Bangladesh's historical edge over India in developed-country apparel markets is often attributed to the 'Everything But Arms' initiative. This initiative refers to which one of the following?

  • A. A European Union preference scheme granting duty-free, quota-free access to all products from Least Developed Countries other than arms
  • B. A World Trade Organization decision binding all developed members to grant duty-free, quota-free access to all developing countries except in arms
  • C. A United Kingdom scheme granting duty-free, quota-free access on everything but arms to all low-income and lower-middle-income countries alike
  • D. A United States preference programme granting duty-free access to apparel from qualifying developing countries, excluding arms and ammunition

Q6. The PM MITRA Parks scheme, approved with a total outlay of ₹4,445 crore for a period of seven years, runs up to which financial year?

  • A. 2024-25, coinciding with the close of the preceding textile mission cycle
  • B. 2025-26, in line with the tenure of the National Technical Textiles Mission
  • C. 2029-30, aligned with the sector's stated export target horizon
  • D. 2027-28, the terminal year notified for the scheme's implementation

Q7. The National Technical Textiles Mission, launched in 2020 with an outlay of ₹1,480 crore and covering all 12 segments of technical textiles, is implemented by which ministry?

  • A. The Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry
  • B. The Ministry of Textiles, Government of India
  • C. The Department of Science and Technology under the Ministry of Science and Technology
  • D. The Ministry of Micro, Small and Medium Enterprises, Government of India

Q8. India's Foreign Trade Policy, under which export promotion measures for sectors such as textiles are administered by the Directorate General of Foreign Trade, derives its statutory authority from which one of the following?

  • A. The Customs Tariff Act, 1975, which fixes rates of duty on imports and exports
  • B. The Foreign Exchange Management Act, 1999, which governs cross-border payments and dealings
  • C. The Foreign Trade (Development and Regulation) Act, 1992, as amended
  • D. The Special Economic Zones Act, 2005, which governs units in notified export enclaves

Q9. As stated by the Ministry of Commerce and Industry for the year 2025-26, India's network of nine free trade agreements spans how many countries?

  • A. 22 countries
  • B. 27 countries
  • C. 52 countries
  • D. 38 countries

Q10. Under the WTO Agreement on Textiles and Clothing, the quantitative restrictions inherited from the Multi-Fibre Arrangement were integrated into normal GATT rules over 1995-2005 in how many stages?

  • A. Three stages
  • B. Four stages
  • C. Five stages
  • D. Ten stages

Q11. In India's textile export basket, the category described as 'technical textiles' is best defined as which one of the following?

  • A. Fabrics manufactured primarily for their functional performance rather than their appearance, grouped into twelve application-based segments
  • B. Fabrics made wholly from man-made fibres and filament yarn, as distinct from cotton and other natural-fibre textiles
  • C. Fabrics produced within integrated textile parks using automated machinery and certified to global quality standards
  • D. Fabrics processed through value-addition stages such as bleaching, dyeing and printing before being exported as made-ups