UPSC Prelims Practice Questions — Government Expands Coverage of RELIEF Scheme Amid West Asia Geopolitical Developments

Q1. The RELIEF scheme for exporters, introduced amid West Asia maritime disruptions, operates as a time-bound intervention under which one of the following as its overarching parent mission?

  • A. Export Promotion Mission
  • B. Foreign Trade Policy 2023
  • C. Production Linked Incentive Scheme
  • D. PM Gati Shakti National Master Plan

Q2. In the context of the intervention launched for exporters in March 2026, the acronym 'RELIEF' precisely stands for which one of the following?

  • A. Resilience & Logistics Intervention for Export Facilitation
  • B. Rapid Export Logistics, Insurance and Enhancement Fund
  • C. Relief for Exporters through Logistics, Insurance and Freight
  • D. Resource-Linked Incentive for Export Freight

Q3. With reference to the Export Promotion Mission (EPM), consider the following statements: 1. It was announced in the Union Budget 2025-26. 2. It carries a total outlay of ₹25,060 crore spanning FY 2025-26 to FY 2030-31. 3. 'Niryat Protsahan' is one of its two broad components. 4. The Reserve Bank of India is its designated nodal implementing agency operating the digital platform. Which of the above is/are NOT correct?

  1. It was announced in the Union Budget 2025-26.
  2. It carries a total outlay of ₹25,060 crore spanning FY 2025-26 to FY 2030-31.
  3. 'Niryat Protsahan' is one of its two broad components.
  4. The Reserve Bank of India is its designated nodal implementing agency operating the digital platform.
  • A. 1 and 2
  • B. 2 and 3
  • C. 4 only
  • D. 3 and 4

Q4. The Export Promotion Mission (EPM) is often contrasted with the earlier export-support architecture. Consider the following statements: 1. Unlike the earlier fragmented export-support schemes, EPM provides a single, outcome-based umbrella framework. 2. It is organised under two broad verticals — Niryat Protsahan (trade-finance access) and Niryat Disha (non-financial enablers). 3. EPM abolishes the RoDTEP scheme and subsumes all duty-remission within itself. Which of the statements given above is/are correct?

  1. Unlike the earlier fragmented export-support schemes, EPM provides a single, outcome-based umbrella framework.
  2. It is organised under two broad verticals — Niryat Protsahan (trade-finance access) and Niryat Disha (non-financial enablers).
  3. EPM abolishes the RoDTEP scheme and subsumes all duty-remission within itself.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. With reference to the Export Credit Guarantee Corporation (ECGC Ltd.), consider the following statements: 1. It provides export credit insurance to exporters against non-payment by overseas buyers arising from commercial and political risks. 2. It is wholly owned by the Government of India and functions under the Ministry of Commerce & Industry. 3. It is India's monetary authority, setting the policy repo rate for export credit. 4. It has been designated the nodal and implementing agency for the RELIEF scheme. Which of the above is/are NOT correct?

  1. It provides export credit insurance to exporters against non-payment by overseas buyers arising from commercial and political risks.
  2. It is wholly owned by the Government of India and functions under the Ministry of Commerce & Industry.
  3. It is India's monetary authority, setting the policy repo rate for export credit.
  4. It has been designated the nodal and implementing agency for the RELIEF scheme.
  • A. 1 only
  • B. 3 only
  • C. 2 and 4
  • D. 1 and 3

Q6. Which of the following are correctly identified with respect to the Export Credit Guarantee Corporation (ECGC Ltd.)? 1. It was set up in 1957 to provide export credit insurance. 2. It is headquartered in Mumbai. 3. Its Board of Directors includes representatives of the Reserve Bank of India. 4. It is the only entity legally permitted to offer any form of insurance cover in India. Which of the above is/are correctly identified?

  1. It was set up in 1957 to provide export credit insurance.
  2. It is headquartered in Mumbai.
  3. Its Board of Directors includes representatives of the Reserve Bank of India.
  4. It is the only entity legally permitted to offer any form of insurance cover in India.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q7. Under the April 2026 expansion, Egypt and Jordan were added to RELIEF for shipments meant for 'delivery or transhipment'. In maritime trade, 'transhipment' most precisely refers to which one of the following?

  • A. The transfer of cargo from one vessel or carrier to another at an intermediate port before onward carriage to the final destination
  • B. The direct carriage of goods from the port of origin to the final destination without any intermediate stop
  • C. The temporary storage of export cargo in a bonded warehouse pending customs clearance
  • D. The re-export of previously imported goods without any processing to claim duty drawback

Q8. Regarding the April 2026 expansion of the RELIEF scheme, consider the following statements: 1. The April 2026 expansion added Egypt and Jordan, whereas the original March 2026 RELIEF notification was centred on the Gulf/West Asia corridor. 2. Egypt's inclusion reflects its exposure as the gateway to the Suez Canal. 3. Jordan's inclusion reflects its exposure through the Mediterranean port of Alexandria. Which of the statements given above is/are correct?

  1. The April 2026 expansion added Egypt and Jordan, whereas the original March 2026 RELIEF notification was centred on the Gulf/West Asia corridor.
  2. Egypt's inclusion reflects its exposure as the gateway to the Suez Canal.
  3. Jordan's inclusion reflects its exposure through the Mediterranean port of Alexandria.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q9. Which of the following are correctly identified regarding the impact of the Red Sea/Gulf shipping disruption on India's trade? 1. Disruptions in the Gulf/West Asia maritime corridor pushed up freight costs and war-risk insurance premia for Indian exporters. 2. Exporters have rerouted vessels around the Cape of Good Hope to avoid the Red Sea, lengthening transit times. 3. MSME exporters, operating on thinner margins, are disproportionately affected by these cost spikes. 4. To bypass the Red Sea, Indian exporters have chiefly rerouted cargo through the Panama Canal. Which of the above is/are correctly identified?

  1. Disruptions in the Gulf/West Asia maritime corridor pushed up freight costs and war-risk insurance premia for Indian exporters.
  2. Exporters have rerouted vessels around the Cape of Good Hope to avoid the Red Sea, lengthening transit times.
  3. MSME exporters, operating on thinner margins, are disproportionately affected by these cost spikes.
  4. To bypass the Red Sea, Indian exporters have chiefly rerouted cargo through the Panama Canal.
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q10. The Bab-el-Mandeb strait, which connects the Red Sea to the Gulf of Aden, acquired its significance as a strategic global chokepoint largely following which one of the following events?

  • A. The opening of the Suez Canal in 1869
  • B. The opening of the Suez Canal in 1914
  • C. The nationalisation of the Suez Canal in 1956
  • D. The opening of the Panama Canal in 1914

Q11. Which one of the following is the principal duty-remission scheme for Indian exporters, designed to refund embedded central, state and local taxes on exported products and which replaced the earlier Merchandise Exports from India Scheme (MEIS)?

  • A. Remission of Duties or Taxes on Export Products (RoDTEP)
  • B. Interest Equalisation Scheme (IES)
  • C. Trade Infrastructure for Export Scheme (TIES)
  • D. Resilience & Logistics Intervention for Export Facilitation (RELIEF)

Q12. India and Egypt elevated their bilateral relationship to the level of a 'Strategic Partnership' in which year, during the Prime Minister's State Visit to Cairo?

  • A. 2021
  • B. 2022
  • C. 2023
  • D. 2024