UPSC Prelims Practice Questions — The cumulative exports (merchandise & services) during FY 2025-26 (April-March) is estimated at US$ 860.09 Billion, as compared to US$ 825.26 Billion in FY 2024-25 (April-March), an estimated growth of 4.22%.

Q1. India's cumulative exports (merchandise and services) during FY 2025-26 (April-March) are officially estimated at approximately which of the following, described as an all-time high?

  • A. US$ 778.13 Billion
  • B. US$ 825.26 Billion
  • C. US$ 860.09 Billion
  • D. US$ 979.40 Billion

Q2. With reference to India's foreign trade in FY 2025-26 (April-March), consider the following indicator–value pairings: 1. Total exports (merchandise + services) — US$ 860.09 Billion 2. Total imports (merchandise + services) — US$ 979.40 Billion 3. Growth in total exports over FY 2024-25 — 7.46% 4. Total exports of the base year FY 2024-25 — US$ 825.26 Billion Which of the above are correctly identified?

  1. Total exports (merchandise + services) — US$ 860.09 Billion
  2. Total imports (merchandise + services) — US$ 979.40 Billion
  3. Growth in total exports over FY 2024-25 — 7.46%
  4. Total exports of the base year FY 2024-25 — US$ 825.26 Billion
  • A. 1, 2 and 4
  • B. 1 and 3 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q3. Which one of the following was the principal driver of the growth in India's total exports in FY 2025-26, recording the highest year-on-year growth rate among the segments?

  • A. Overall merchandise exports
  • B. Non-petroleum merchandise exports
  • C. Services exports
  • D. Petroleum product exports

Q4. The estimates of India's services exports, which are combined with merchandise data to arrive at total exports, are published by which one of the following institutions?

  • A. Directorate General of Commercial Intelligence and Statistics (DGCI&S), Kolkata
  • B. Reserve Bank of India
  • C. Directorate General of Foreign Trade (DGFT)
  • D. Ministry of Statistics and Programme Implementation (MoSPI)

Q5. With reference to India's merchandise trade in FY 2025-26 (April-March), consider the following statements: 1. The merchandise trade deficit widened to about US$ 333.19 Billion. 2. Merchandise imports grew by about 7.46%. 3. Non-petroleum merchandise exports stood at about US$ 387.88 Billion. 4. Merchandise exports contracted in absolute terms compared with FY 2024-25. Which of the above is/are NOT correct?

  1. The merchandise trade deficit widened to about US$ 333.19 Billion.
  2. Merchandise imports grew by about 7.46%.
  3. Non-petroleum merchandise exports stood at about US$ 387.88 Billion.
  4. Merchandise exports contracted in absolute terms compared with FY 2024-25.
  • A. 4 only
  • B. 1 and 4
  • C. 2 and 3
  • D. 3 only

Q6. In the context of India's external sector data, the term 'merchandise trade deficit' precisely refers to the:

  • A. Excess of merchandise imports over merchandise exports
  • B. Excess of total (goods + services) imports over total exports
  • C. Net deficit on the current account of the balance of payments
  • D. Excess of services imports over services exports

Q7. With reference to the Foreign Trade Policy (FTP) 2023 as compared with the earlier policy regime, consider the following statements: 1. Unlike the earlier five-year policy (FTP 2015-20), FTP 2023 has no fixed end date/sunset clause and is designed to be updated dynamically. 2. FTP 2023 came into effect from 1 April 2023. 3. FTP 2023 was the first Indian foreign trade policy ever to set a numerical export target, the earlier policies having set none. Which of the statements given above is/are correct?

  1. Unlike the earlier five-year policy (FTP 2015-20), FTP 2023 has no fixed end date/sunset clause and is designed to be updated dynamically.
  2. FTP 2023 came into effect from 1 April 2023.
  3. FTP 2023 was the first Indian foreign trade policy ever to set a numerical export target, the earlier policies having set none.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. The overall exports target of US$ 2 trillion adopted within the Foreign Trade Policy 2023 framework is officially set to be achieved by which year?

  • A. 2025-26
  • B. 2027-28
  • C. 2030-31
  • D. 2035-36

Q9. With reference to India's total exports (merchandise + services), consider the following statements: 1. FY 2023-24 — about US$ 778.13 Billion. 2. FY 2024-25 — about US$ 825.26 Billion. 3. FY 2025-26 — about US$ 860.09 Billion. 4. The growth of total exports in FY 2025-26 over the previous year was about 5.50%. Which of the above is/are NOT correct?

  1. FY 2023-24 — about US$ 778.13 Billion.
  2. FY 2024-25 — about US$ 825.26 Billion.
  3. FY 2025-26 — about US$ 860.09 Billion.
  4. The growth of total exports in FY 2025-26 over the previous year was about 5.50%.
  • A. 4 only
  • B. 3 and 4
  • C. 1 and 2
  • D. 2 only

Q10. The official merchandise export and import statistics that underlie India's year-wise foreign trade figures are compiled and released primarily by which one of the following?

  • A. Directorate General of Commercial Intelligence and Statistics (DGCI&S), Kolkata
  • B. Directorate General of Foreign Trade (DGFT)
  • C. Reserve Bank of India
  • D. National Statistical Office (NSO)

Q11. In India's balance of payments for FY 2025-26, which one of the following is the single largest deficit component, whose impact on the current account is partly cushioned by the services surplus?

  • A. Merchandise (goods) trade deficit
  • B. Services trade balance
  • C. Secondary income (private remittances) balance
  • D. Net investment income balance