UPSC Prelims Practice Questions — India and Republic of Korea Sign MoU to Strengthen Cooperation in MSME Sector
Q1. With reference to the Memorandum of Understanding on MSME cooperation signed between India and the Republic of Korea in April 2026, consider the following as envisaged areas of cooperation:
1. Business matchmaking between enterprises of the two countries
2. Exchange of information and experts
3. Joint development of secondary batteries and semiconductors
4. Sharing of best practices in the MSME ecosystem
Which of the above is/are correctly identified as areas of cooperation under the MoU?
- Business matchmaking between enterprises of the two countries
- Exchange of information and experts
- Joint development of secondary batteries and semiconductors
- Sharing of best practices in the MSME ecosystem
- A. 1 and 2 only
- B. 2 and 4 only
- C. 1, 2 and 4
- D. 1, 3 and 4
Q2. The India–Republic of Korea MoU on MSME cooperation (April 2026) was concluded on the Korean side exclusively with which one of the following ministries?
- A. Ministry of SMEs and Startups
- B. Ministry of Trade, Industry and Energy
- C. Ministry of Economy and Finance
- D. Ministry of Science and ICT
Q3. During the State Visit of ROK President Lee Jae Myung to India in April 2026, how many key outcomes were announced by the two leaders following delegation-level talks?
Q4. The Joint Strategic Vision for the India-ROK Special Strategic Partnership (2026-2030) was adopted during a State Visit hosted for which incumbent President of the Republic of Korea, in what was his earliest visit to India after assuming office?
- A. Lee Jae Myung
- B. Yoon Suk Yeol
- C. Moon Jae-in
- D. Han Duck-soo
Q5. Under the Joint Strategic Vision (2026-2030), which Korean industry body opened its first overseas office, located in Mumbai, to develop the ancillary ecosystem supporting the maritime industry?
- A. Korea Marine Equipment Association (KOMEA)
- B. Korea Trade-Investment Promotion Agency (KOTRA)
- C. Korea International Cooperation Agency (KOICA)
- D. Korea Shipbuilders' Association (KOSHIPA)
Q6. The Joint Strategic Vision for the India-ROK Special Strategic Partnership sets a target of raising bilateral trade to how much by the year 2030?
- A. USD 30 billion
- B. USD 50 billion
- C. USD 75 billion
- D. USD 100 billion
Q7. Consider the following statements comparing milestones in India–Republic of Korea relations:
1. India and the Republic of Korea established formal diplomatic relations in 1973.
2. The relationship was elevated to a 'Strategic Partnership' in 2010, coinciding with the coming into force of the CEPA.
3. It was further upgraded to a 'Special Strategic Partnership' in 2015 during the ROK President's visit to New Delhi.
Which of the statements given above is/are correct?
- India and the Republic of Korea established formal diplomatic relations in 1973.
- The relationship was elevated to a 'Strategic Partnership' in 2010, coinciding with the coming into force of the CEPA.
- It was further upgraded to a 'Special Strategic Partnership' in 2015 during the ROK President's visit to New Delhi.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 only
- D. 1, 2 and 3
Q8. With reference to the chronology of India–Republic of Korea relations, consider the following year–milestone pairs:
1. 1973 — Establishment of diplomatic ties
2. 2015 — Upgrade to Special Strategic Partnership
3. 2023 — Commemoration of 50 years of diplomatic relations
4. 2015 — Comprehensive Economic Partnership Agreement (CEPA) enters into force
Which of the above pairs is/are correctly matched?
- 1973 — Establishment of diplomatic ties
- 2015 — Upgrade to Special Strategic Partnership
- 2023 — Commemoration of 50 years of diplomatic relations
- 2015 — Comprehensive Economic Partnership Agreement (CEPA) enters into force
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2, 3 and 4
- D. 1, 3 and 4
Q9. As per 2025-26 trade data cited during the CEPA upgrade negotiations, India's merchandise trade deficit with the Republic of Korea stood at approximately which of the following?
- A. USD 6 billion
- B. USD 15 billion
- C. USD 21 billion
- D. USD 27 billion
Q10. Under the revised MSME classification announced in the Union Budget 2025-26 and effective from 1 April 2025, the upper limit of investment for an enterprise to qualify as a 'Medium' enterprise was raised to which of the following?
- A. Rs 50 crore
- B. Rs 125 crore
- C. Rs 250 crore
- D. Rs 500 crore
Q11. Consider the following statements comparing the MSME support institutions of India and the Republic of Korea:
1. India's Ministry of Micro, Small and Medium Enterprises derives its statutory mandate from the MSMED Act, 2006.
2. Korea's Ministry of SMEs and Startups (MSS) was established in 2017 by upgrading the erstwhile Small and Medium Business Administration.
3. The Korean MSS, as a full-fledged ministry, predates India's dedicated MSME ministerial framework.
Which of the statements given above is/are correct?
- India's Ministry of Micro, Small and Medium Enterprises derives its statutory mandate from the MSMED Act, 2006.
- Korea's Ministry of SMEs and Startups (MSS) was established in 2017 by upgrading the erstwhile Small and Medium Business Administration.
- The Korean MSS, as a full-fledged ministry, predates India's dedicated MSME ministerial framework.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 only
- D. 1, 2 and 3
Q12. India's Ministry of MSME signed a MoU in 2024 with the 'Small Business Administration (SBA)' of the United States. In this context, the SBA is best described as which one of the following?
- A. An independent agency of the U.S. federal government that aids, counsels and protects the interests of small businesses
- B. A private-sector federation of American small and medium enterprises
- C. A specialised lending window of the U.S. Federal Reserve for small businesses
- D. A multilateral development bank that finances small enterprises in developing countries