UPSC Prelims Practice Questions — Prime Minister speaks to President Trump

Q1. In the context of the February 2026 India–US Interim Trade Agreement, the term '18 per cent reciprocal tariff' most accurately refers to which one of the following?

  • A. The revised United States customs duty applied to a large basket of Indian-origin goods, replacing the earlier punitive rate of up to 50 per cent
  • B. A uniform 18 per cent duty that India agreed to levy on all imports from the United States
  • C. The average tariff that both countries agreed to jointly eliminate by 2030
  • D. A ceiling of 18 per cent placed on Indian tariffs applicable only to United States agricultural goods

Q2. Which Union ministry is the nodal ministry responsible for negotiating and operationalising India's Bilateral Trade Agreement and the interim trade arrangement with the United States?

  • A. Ministry of Commerce and Industry
  • B. Ministry of External Affairs
  • C. Ministry of Finance
  • D. Ministry of Corporate Affairs

Q3. With reference to the US–India COMPACT initiative announced in the Joint Statement of 13 February 2025, consider the following: 1. Mission 500, targeting bilateral trade of USD 500 billion by 2030 2. TRUST, the framework succeeding the earlier iCET on critical and emerging technologies 3. A 10-year Major Defence Partnership framework 4. Expansion of India's shareholding in the BRICS New Development Bank Which of the above is/are correctly identified as components associated with the COMPACT initiative?

  1. Mission 500, targeting bilateral trade of USD 500 billion by 2030
  2. TRUST, the framework succeeding the earlier iCET on critical and emerging technologies
  3. A 10-year Major Defence Partnership framework
  4. Expansion of India's shareholding in the BRICS New Development Bank
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q4. In the India–US COMPACT initiative announced in the February 2025 Joint Statement, the acronym 'COMPACT' stands for which one of the following?

  • A. Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology (for the 21st Century)
  • B. Comprehensive Multi-sector Partnership for Commerce and Trade
  • C. Cooperative Mechanism for Pacific and Atlantic Commerce and Trade
  • D. Coordinated Military Procurement and Advanced Combat Technology

Q5. With reference to the India–US Bilateral Trade Agreement (BTA) and its interim arrangement, consider the following: 1. The BTA negotiations were formally launched by the two leaders in February 2025. 2. The two sides set a target to conclude the first tranche of the BTA by the fall of 2025. 3. The interim agreement framework reached in early February 2026 retained a reciprocal tariff of 18 per cent on a range of Indian goods. 4. Under the interim agreement, India opened its dairy sector to zero-duty access for United States products. Which of the above is/are correctly identified?

  1. The BTA negotiations were formally launched by the two leaders in February 2025.
  2. The two sides set a target to conclude the first tranche of the BTA by the fall of 2025.
  3. The interim agreement framework reached in early February 2026 retained a reciprocal tariff of 18 per cent on a range of Indian goods.
  4. Under the interim agreement, India opened its dairy sector to zero-duty access for United States products.
  • A. 1 and 3 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 2 and 4

Q6. Under the February 2026 Interim Trade Agreement, over approximately what period has India indicated its intent to purchase around USD 500 billion of United States energy products, aircraft and aircraft parts, precious metals and technology products?

  • A. 3 years
  • B. 5 years
  • C. 7 years
  • D. 10 years

Q7. The head of the Press Information Bureau (PIB), who holds the rank of Principal Director General, also serves as which one of the following?

  • A. Official Spokesperson of the Government of India
  • B. Principal Information Officer to the President of India
  • C. Media Adviser to the Election Commission of India
  • D. Press Secretary in the Prime Minister's Office

Q8. The Press Information Bureau (PIB), which issued the official readout of the India–US trade developments, functions exclusively under which one of the following Union ministries?

  • A. Ministry of Information and Broadcasting
  • B. Ministry of External Affairs
  • C. Ministry of Electronics and Information Technology
  • D. Prime Minister's Office

Q9. With reference to recent India–US technology and strategic frameworks, consider the following statements: 1. TRUST is the rebranded successor to the earlier Initiative on Critical and Emerging Technologies (iCET). 2. TRUST prioritises cooperation in areas such as semiconductors, quantum computing and artificial intelligence. 3. Mission 500 replaced the Quad as the principal India–US security dialogue. Which of the statements given above is/are correct?

  1. TRUST is the rebranded successor to the earlier Initiative on Critical and Emerging Technologies (iCET).
  2. TRUST prioritises cooperation in areas such as semiconductors, quantum computing and artificial intelligence.
  3. Mission 500 replaced the Quad as the principal India–US security dialogue.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. The Quad, a plurilateral grouping of which both India and the United States are members, comprises how many member countries?

  • A. 3
  • B. 4
  • C. 5
  • D. 6

Q11. With reference to the Most-Favoured-Nation (MFN) principle and 'reciprocal' tariffs, consider the following statements: 1. Under the WTO's MFN principle, a member extending a tariff concession to one trading partner must generally extend the same to all other members. 2. 'Reciprocal' tariffs, as applied by the United States, seek to match the tariff a partner imposes rather than apply a single non-discriminatory rate to all partners. 3. The MFN principle is embodied in Article I of the General Agreement on Tariffs and Trade (GATT). Which of the statements given above is/are correct?

  1. Under the WTO's MFN principle, a member extending a tariff concession to one trading partner must generally extend the same to all other members.
  2. 'Reciprocal' tariffs, as applied by the United States, seek to match the tariff a partner imposes rather than apply a single non-discriminatory rate to all partners.
  3. The MFN principle is embodied in Article I of the General Agreement on Tariffs and Trade (GATT).
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q12. With reference to the sector-wise treatment of Indian exports under the February 2026 Interim Trade Agreement, consider the following statements: 1. Tariffs on Indian textile exports were cut to 18 per cent, while silk was granted zero-duty access. 2. Generic pharmaceuticals, gems and diamonds, and aircraft parts were moved to zero reciprocal tariff. 3. Indian dairy products and staple grains such as rice and wheat were opened by India to zero-duty tariff cuts under the interim agreement. Which of the statements given above is/are correct?

  1. Tariffs on Indian textile exports were cut to 18 per cent, while silk was granted zero-duty access.
  2. Generic pharmaceuticals, gems and diamonds, and aircraft parts were moved to zero reciprocal tariff.
  3. Indian dairy products and staple grains such as rice and wheat were opened by India to zero-duty tariff cuts under the interim agreement.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3