UPSC Prelims Practice Questions — India Achieves Landmark Trade Victory, Unlocks $30-Trillion U.S. Market for Exports Across Key Sectors

Q1. The India-U.S. Bilateral Trade Agreement, under which tariffs on USD 30.94 billion of Indian exports were cut from 50% to 18%, is negotiated and implemented on the Indian side by which authority?

  • A. The Department of Commerce, Ministry of Commerce and Industry
  • B. The Directorate General of Foreign Trade, functioning independently of any ministry
  • C. The Department of Revenue, Ministry of Finance
  • D. The Foreign Trade Division, Ministry of External Affairs

Q2. In the context of the India-U.S. trade deal, the term 'Reciprocal Tariffs' most precisely refers to which one of the following?

  • A. Additional duties imposed by the United States on imports in response to duties levied by the partner country, to which USD 40.96 billion of India's exports were subject before the deal
  • B. A uniform 18% duty jointly levied by both countries on all bilateral trade
  • C. Duties refunded to exporters of both nations on a matching, item-for-item basis
  • D. Anti-dumping duties imposed under WTO dispute-settlement rulings

Q3. 'Mission 500', associated with the India-U.S. trade relationship, was announced in 2025 under whose authority?

  • A. Jointly by Prime Minister Narendra Modi and U.S. President Donald Trump
  • B. By the World Trade Organization's Ministerial Conference
  • C. Jointly by the Commerce Minister of India and the U.S. Secretary of Commerce
  • D. By the QUAD Leaders' Summit

Q4. The target set under 'Mission 500' precisely denotes which one of the following?

  • A. Raising India-U.S. bilateral trade to USD 500 billion by 2030
  • B. Raising India's merchandise exports to the United States to USD 500 billion by 2030
  • C. Securing USD 500 billion of U.S. investment into India by 2030
  • D. Doubling India-U.S. bilateral trade to USD 500 billion by 2025

Q5. Which one of the following statements about the institutional conduct of the India-U.S. Bilateral Trade Agreement negotiations is correct?

  • A. They are conducted between India's Department of Commerce and the Office of the U.S. Trade Representative
  • B. They are conducted exclusively by India's Ministry of External Affairs with the U.S. State Department
  • C. They are conducted solely under the multilateral supervision of the WTO Secretariat
  • D. They are conducted only through the QUAD trade working group

Q6. Consider the following statements comparing the India-U.S. Bilateral Trade Agreement (BTA) with its broader framework: 1. The BTA is a bilateral framework negotiated outside the WTO's multilateral structure. 2. The first tranche of the BTA was targeted for conclusion by fall 2025. 3. Unlike 'Mission 500', the BTA is confined solely to trade in services. Which of the statements given above is/are correct?

  1. The BTA is a bilateral framework negotiated outside the WTO's multilateral structure.
  2. The first tranche of the BTA was targeted for conclusion by fall 2025.
  3. Unlike 'Mission 500', the BTA is confined solely to trade in services.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q7. Under the India-U.S. trade deal, Indian agricultural exports of what value receive zero additional U.S. duty?

  • A. USD 1.36 billion
  • B. USD 1.63 billion
  • C. USD 10.03 billion
  • D. USD 13.60 billion

Q8. Which one of the following heads the list of agricultural items granted zero additional U.S. duty under the deal, while being absent from India's protected 'Exemption' category?

  • A. Spices
  • B. Dairy products
  • C. Maize
  • D. Millets

Q9. According to official data cited with the trade deal, India's total merchandise exports to the United States of USD 86.35 billion relate to which year?

  • A. 2024
  • B. 2022
  • C. 2023
  • D. 2026

Q10. In FY 2024-25, the United States was the single largest (top) destination for India's exports of which one of the following categories?

  • A. Electronics goods
  • B. Pharmaceuticals
  • C. Gems and jewellery
  • D. Marine products

Q11. Under the India-U.S. trade deal, which of the following are correctly identified as items granted 0% (zero) duty market access, rather than the reduced 18% duty? 1. Silk 2. Diamonds 3. Readymade garments 4. Platinum and coins Which of the above is/are correctly identified?

  1. Silk
  2. Diamonds
  3. Readymade garments
  4. Platinum and coins
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 4 only
  • D. 3 only

Q12. With reference to India's trade agreements, consider the following: 1. India-UAE CEPA — entered into force in 2022 2. India-Australia ECTA — entered into force in 2022 3. India-EFTA TEPA — its EFTA bloc comprises Switzerland, Norway, Iceland and Liechtenstein 4. India-EFTA TEPA — entered into force in March 2024 Which of the above is/are correctly identified?

  1. India-UAE CEPA — entered into force in 2022
  2. India-Australia ECTA — entered into force in 2022
  3. India-EFTA TEPA — its EFTA bloc comprises Switzerland, Norway, Iceland and Liechtenstein
  4. India-EFTA TEPA — entered into force in March 2024
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3 only
  • D. 3 and 4 only