UPSC Prelims Practice Questions — India’s goods exports hit record high of $45.2 billion in May; trade deficit widens
Q1. In May 2026, which one of the following sectors was the single largest contributor to India's merchandise exports, accounting for nearly 28 per cent of the total?
- A. Petroleum products
- B. Gems and jewellery
- C. Engineering goods
- D. Electronic goods
Q2. Under which one of the following has the Government of India set the target of taking the country's overall exports (goods and services) to US$ 2 trillion by the year 2030?
- A. National Manufacturing Policy, 2011
- B. Foreign Trade Policy, 2023
- C. Production Linked Incentive (PLI) Scheme, 2020
- D. Make in India 2.0 framework, 2017
Q3. In the context of India's monthly trade data, the term "merchandise trade deficit" refers to which one of the following?
- A. The excess of merchandise imports over merchandise exports during the reference period
- B. The excess of total imports (goods plus services) over total exports during the period
- C. The net outflow on the capital account of the balance of payments
- D. The gap between current account receipts and payments, excluding remittances
Q4. With reference to India's external trade performance in May 2026 as compared to May 2025, consider the following statements:
1. Merchandise exports grew at a faster rate than merchandise imports.
2. The overall trade deficit (merchandise plus services) widened in absolute terms.
3. Engineering goods exports recorded a higher year-on-year percentage growth than electronic goods exports.
Which of the statements given above is/are correct?
- Merchandise exports grew at a faster rate than merchandise imports.
- The overall trade deficit (merchandise plus services) widened in absolute terms.
- Engineering goods exports recorded a higher year-on-year percentage growth than electronic goods exports.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3