UPSC Prelims Practice Questions — India’s imports from China soar to $80 bn in first half of 2026

Q1. The record figure that India's imports from China rose 21.8% to $79.41 billion in the first half of 2026 was released by which one of the following agencies?

  • A. China's General Administration of Customs (GACC)
  • B. India's Directorate General of Commercial Intelligence and Statistics (DGCI&S)
  • C. The World Trade Organization's Trade Statistics Division
  • D. The United Nations Conference on Trade and Development (UNCTAD)

Q2. In the first half (H1) of 2026, by approximately how many billion US dollars did India's imports from China exceed its exports to China (i.e. the bilateral trade deficit)?

  • A. About $67 billion
  • B. About $62 billion
  • C. About $72 billion
  • D. About $79 billion

Q3. China became India's 'largest trading partner' in FY2025-26. In this context, the term 'largest trading partner' most precisely refers to the country with the largest —

  • A. combined two-way (exports plus imports) merchandise trade with India
  • B. share in India's total merchandise imports alone
  • C. bilateral merchandise trade deficit with India
  • D. share in India's total merchandise exports alone

Q4. China overtook the United States to become India's largest trading partner in FY2025-26. The United States had held that position for four consecutive years up to which fiscal year?

  • A. FY2024-25
  • B. FY2022-23
  • C. FY2020-21
  • D. FY2019-20

Q5. With reference to India-China trade in calendar year 2025, consider the following statements: 1. India's trade deficit with China reached a record of about $116.12 billion. 2. This deficit was higher than the 2024 deficit of roughly $99 billion. 3. Two-way India-China trade set a record of about $155.62 billion. 4. India's exports to China exceeded its imports from China during the year. Which of the above are correctly identified?

  1. India's trade deficit with China reached a record of about $116.12 billion.
  2. This deficit was higher than the 2024 deficit of roughly $99 billion.
  3. Two-way India-China trade set a record of about $155.62 billion.
  4. India's exports to China exceeded its imports from China during the year.
  • A. 1, 2 and 3
  • B. 2, 3 and 4
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q6. India's trade deficit with China widened from about $99 billion in 2024 to a record $116.12 billion in 2025. This is a year-on-year increase of approximately how many billion US dollars?

  • A. About $17 billion
  • B. About $12 billion
  • C. About $29 billion
  • D. About $40 billion

Q7. Consider the following categories: 1. Integrated circuits and electronic equipment 2. Organic chemicals and active pharmaceutical ingredients 3. Solar cells and modules 4. Crude petroleum Which of the above is/are NOT correctly identified as a major category of India's imports from China?

  1. Integrated circuits and electronic equipment
  2. Organic chemicals and active pharmaceutical ingredients
  3. Solar cells and modules
  4. Crude petroleum
  • A. 4 only
  • B. 1 and 3
  • C. 2 only
  • D. 3 and 4

Q8. India's heavy reliance on Chinese 'APIs' is repeatedly cited as a driver of the trade deficit in the pharmaceutical sector. In this context, an 'API' is best defined as —

  • A. the Active Pharmaceutical Ingredient — the biologically active raw material that produces a drug's intended effect
  • B. an Approved Pharmaceutical Import cleared by the drug regulator for domestic sale
  • C. a category of finished, packaged medicines ready for retail sale
  • D. a software interface used to track pharmaceutical shipments across borders

Q9. India's June 2026 data showed its 'merchandise trade deficit' widening sharply. The term 'merchandise trade deficit' precisely refers to the excess of —

  • A. goods imports over goods exports in a given period
  • B. total imports over total exports, including both goods and services
  • C. outward remittances over inward remittances on the current account
  • D. foreign liabilities over foreign assets on the capital account

Q10. With reference to India's response to import dependence on China, consider the following statements: 1. The Production Linked Incentive (PLI) scheme for bulk drugs/APIs was launched in 2020 to reduce dependence on China. 2. India imports roughly 70% of its active pharmaceutical ingredient (API) requirement from China. 3. 'China plus one' refers to firms diversifying supply chains by adding a manufacturing base outside China. 4. The PLI scheme for bulk drugs is administered by the Ministry of External Affairs. Which of the above are correctly identified?

  1. The Production Linked Incentive (PLI) scheme for bulk drugs/APIs was launched in 2020 to reduce dependence on China.
  2. India imports roughly 70% of its active pharmaceutical ingredient (API) requirement from China.
  3. 'China plus one' refers to firms diversifying supply chains by adding a manufacturing base outside China.
  4. The PLI scheme for bulk drugs is administered by the Ministry of External Affairs.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q11. With reference to India's trade with China in FY2025-26 compared with its other trade, consider the following statements: 1. India's exports to China grew faster (about 36.66%) than its imports from China (about 16%). 2. Even so, India's imports from China remained more than six times its exports to China. 3. India's exports to China were larger in value than its exports to the United States. Which of the statements given above is/are correct?

  1. India's exports to China grew faster (about 36.66%) than its imports from China (about 16%).
  2. Even so, India's imports from China remained more than six times its exports to China.
  3. India's exports to China were larger in value than its exports to the United States.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q12. In the context of India's official foreign-trade figures, the Directorate General of Commercial Intelligence and Statistics (DGCI&S) is best described as —

  • A. the nodal agency under the Ministry of Commerce and Industry for compiling and disseminating India's official trade statistics
  • B. a wing of the Reserve Bank of India that manages foreign exchange reserves
  • C. a customs-collection division under the Ministry of Finance
  • D. an attached office of the Ministry of Statistics that prepares national income accounts