UPSC Prelims Practice Questions — Festivals to boost textile sales but China imports a concern
Q1. Domestic garment makers allege that a foreign government pays its garment exporters a cash grant for every unit shipped abroad, which lets those exporters sell in India at very low prices. Which one of the following trade remedies is designed specifically to offset this kind of advantage?
- A. Countervailing duty
- B. Anti-dumping duty
- C. Safeguard duty
- D. Quality Control Order
Q2. With reference to rules of origin under India's trade agreements, consider the following statements: Which of the statements given above is/are correct?
- Under the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020, an importer claiming preferential duty must exercise due diligence that the goods meet the prescribed originating criteria.
- The preferential rules of origin of an FTA also decide the duty payable on goods imported directly from a country that is not a party to that FTA.
- Goods from an FTA partner that fail to meet the agreement's originating criteria lose the preferential tariff, but they can still be imported at the normal non-preferential rate.
- A. 1 only
- B. 2 and 3 only
- C. 1, 2 and 3
- D. 1 and 3 only
Q3. Which one of the following best distinguishes the Production Linked Incentive (PLI) Scheme for Textiles from the PM MITRA Parks scheme?
- A. PLI is confined to cotton, handloom and other natural-fibre segments of textiles, while PM MITRA is confined to setting up technical textile units
- B. PLI is implemented through SPVs owned jointly by the Centre and States, while PM MITRA parks are built and run solely by private master developers
- C. PLI pays eligible firms incentives linked to investment and incremental turnover, while PM MITRA creates shared infrastructure for an integrated value chain at a site
- D. PLI funds common infrastructure inside integrated textile parks, while PM MITRA pays individual firms incentives linked to their incremental turnover of MMF products