UPSC Prelims Practice Questions — Union Budget 2026–27: Exports Take Centre Stage as Budget Pushes Jobs, Manufacturing and Global Value Chains

Q1. With reference to the flagship schemes announced in the Union Budget 2026-27, consider the following statements: Which of the statements given above is/are correct?

  1. The Biopharma SHAKTI scheme has an outlay of ₹10,000 crore spread over five years.
  2. The SME Growth Fund and the Biopharma SHAKTI scheme were each announced with an identical corpus of ₹10,000 crore.
  3. The Electronics Components Manufacturing Scheme's outlay was retained at its April 2025 level of ₹22,919 crore in the 2026-27 Budget.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. Which one of the following schemes announced in the Union Budget 2026-27 has the largest financial outlay?

  • A. Electronics Components Manufacturing Scheme
  • B. Biopharma SHAKTI
  • C. SME Growth Fund
  • D. India Semiconductor Mission 2.0 (FY 2026-27 provision)

Q3. Under the Budget 2026-27 reform permitting SEZ units to sell manufactured goods in the Domestic Tariff Area (DTA) at concessional duty, which of the following are correctly identified as eligibility conditions?

  1. A minimum value addition of 20% for all goods cleared into the DTA.
  2. The SEZ unit must have commenced production on or before 31 March 2025.
  3. DTA sales are capped at 30% of the unit's highest annual export value in the three immediately preceding financial years.
  4. The concession is available only to SEZ units exclusively manufacturing semiconductors and electronic components.
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q4. Under the Budget 2026-27 SEZ reform, DTA sales at concessional duty by an eligible SEZ unit are capped at what percentage of its highest annual export value in the three immediately preceding financial years?

  • A. 20%
  • B. 30%
  • C. 50%
  • D. 15%

Q5. The Biopharma SHAKTI scheme announced in the Union Budget 2026-27 is implemented by which one of the following?

  • A. Department of Pharmaceuticals
  • B. Ministry of Health and Family Welfare
  • C. Department of Biotechnology
  • D. Indian Council of Medical Research

Q6. With reference to the administrative responsibility for initiatives in the Union Budget 2026-27, consider the following statements: Which of the statements given above is/are correct?

  1. India Semiconductor Mission 2.0 is steered by the Ministry of Electronics and Information Technology (MeitY).
  2. The Textile Integrated Programme is administered by the Ministry of Textiles.
  3. The SME Growth Fund falls under the administrative purview of the Ministry of Commerce and Industry.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q7. In the context of the Self-Reliant India (SRI) Fund topped up in Budget 2026-27, the 'Fund of Funds' mechanism most precisely refers to which of the following?

  • A. A government 'Mother Fund' that channels equity into SEBI-registered 'Daughter Funds' (AIFs), which in turn invest growth capital in MSMEs
  • B. Direct grant disbursal from the Centre to individual micro enterprises
  • C. A sovereign guarantee cover against defaults on MSME term loans
  • D. An interest-subvention window for MSME working-capital borrowing

Q8. The Self-Reliant India (SRI) Fund is operated through which one of the following as its fund manager?

  • A. NSIC Venture Capital Fund Limited (NVCFL)
  • B. SIDBI Venture Capital Limited
  • C. National Investment and Infrastructure Fund
  • D. Small Industries Development Bank of India (SIDBI)

Q9. With reference to measures announced in Budget 2026-27 to deepen India's integration into Global Value Chains, consider the following: Which of the above is/are NOT correct?

  1. A new Dedicated Freight Corridor connecting Dankuni to Surat.
  2. Operationalisation of 20 new National Waterways over five years.
  3. Reorientation of SEZs to permit limited DTA sales at concessional duty.
  4. Mandatory adoption of the LEADS platform by all Central Public Sector Enterprises for financing MSME receivables.
  • A. 1 only
  • B. 4 only
  • C. 3 and 4
  • D. 2 and 4

Q10. The new Dedicated Freight Corridor (Dankuni–Surat) announced to lower logistics costs for exporters would be implemented under which one of the following?

  • A. Ministry of Railways
  • B. Ministry of Ports, Shipping and Waterways
  • C. Ministry of Road Transport and Highways
  • D. Ministry of Commerce and Industry

Q11. The Comprehensive Logistics Action Plan (CLAP) under the National Logistics Policy, 2022 is structured around how many action areas?

  • A. 6
  • B. 8
  • C. 5
  • D. 10