6H) International Trade (Prelims PYQs)

2023 Prelims PYQs

1] Consider the following statements: [2023]

Statement-I:
India accounts for 3-2% of global export of goods.

Statement-II:
Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.

Which one of the following is correct in respect of the above statements?
a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
c) Statement-I is correct but Statement-II is incorrect
d) Statement-I is incorrect but Statement-II is correct

2020 Prelims PYQs

1] Consider the following statements: [2020]

1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh.
3. In the last five years, Nepal has been the largest trading partner of India in South Asia.
Which of the statements given above is/are correct?

a) 1 and 2 only
b) 2 only
c) 3 only
d) 1, 2 and 3

2] With reference to the international trade of India at present, which of the following statements is/are correct? [2020]

1. India’s merchandise exports are less than its merchandise imports.
2. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.
3. India’s exports of services are more than its imports of services.
4. India suffers from an overall trade/current account deficit.
Select the correct answer using the code given below:

a) 1 and 2 only
b) 2 and 4 only
c) 3 only
d) 1, 3 and 4 only

3] With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? [2020]

1. Quantitative restrictions on imports by foreign investors are prohibited.
2. They apply to investment measures related to trade in both goods and services.
3. They are not concerned with the regulation of foreign investment.
Select the correct answer using the code given below:

a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 1, 2 and 3

2019 Prelims PYQs

1] Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years? [2019]

a) Spices
b) Fresh fruits
c) Pulses
d) Vegetable oils

2018 Prelims PYQs

1] Consider the following statements: [2018]

1. The quality of imported edible oil is more than the domestic production of edible oils in the last five years.
2. The Government does not impose any custom duty on all the imported edible oils as a special case.
Which of the statements given above is/are correct?

a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2 

2006-1995 Prelims PYQs

1] Consider the following statements: [2006]

1. In India, during the financial year 2004-2005, an increase of below 10% over the value of exports (in rupee terms) in the financial year 2003-2004 was reported.
2. According to the WTO, India’s share in the world merchandise exports was 2% in the year 2005.

Which of the statements given above is/are correct?
a) 1 only                             b) 2 only
c) Both 1 and 2                 d) Neither 1 nor 2

2] Assertion (A): For the first time, India had no trade deficit in the year 2002- 03.: [2004]

Reason (R): For the first time, India’s exports crossed worth $ 50 billion in the year 2002-03.
a) Both A and R are individually true and R is the correct explanation of A
b) Both A and R are individually true but R is not the correct explanation of A
c) A is true but R is false
d) A is false but R is true

3] Consider the following statements: [2003]

1. India’s import of crude and petroleum product during the year 2001-02 accounted for about 27% of India’s total imports.
2. During the year, 2001-02, India’s exports had increased by 10% as compared to the previous year

Which of these statements is/are correct?
a) Only 1                            b) Only 2
c) Both 1 and 2                 d) Neither 1 nor 2

4] Consider the following statements: [2003]

1. India ranks first in the world in fruit production.
2. India ranks second in the world in the export of tobacco.

Which of these statements is/are correct?
a) Only 1                             b) Only 2
c) Both 1 and 2                 d) Neither 1 nor 2

5] Consider the following statements: [2003]

1. In the last five years, Indian software exports have increased at a compound annual growth rate of about 60%
2. The software and service industry in India registered an overall growth of about 28% in rupee terms during the year 2001­2002.

Which of these statements is/are correct?
a) Only 1                             b) Only 2
c) Both 1 and 2                 d) Neither 1 nor 2

6] Assertion (A): During the year 2001-02, the value of India’s total exports declined, registering a negative growth of 2.17%.: [2003]

Reason (R): During the year 2001-02, negative growth in exports was witnessed in respect of iron and steel, coffee, textiles and marine products.
a) Both A and R are individually true and R is the correct explanation of A
b) Both A and R are individually true but R is NOT the correct explanation of A
c) A is true but R is false
d) A is false but R is true

7] Assertion (A): The new EXIM Policy is liberal, market oriented and favours global trade.: [2003]

Reason (R): GATT has played a significant role in the liberalisation of economy.
a) Both A and R are individually true and R is the correct explanation of A
b) Both A and R are individually true but R is NOT the correct explanation of A
c) A is true but R is false
d) A is false but R is true

8] Among the following commodities imported by India during the year 2001-02, which one was the highest in terms of Rupee value? [2003]

a) Edible oil
b) Fertilizers
c) Organic and inorganic chemicals
d) Pearls, precious and semi-precious stones

9] India has the maximum volume of foreign trade with: [2002]

a) USA                 b) Japan
c) Germany         d) UAE

10] In terms of value, which one of the following commodities accounted for the largest agricultural exports by India during the three year period from 1997-1998 to 1999-2000? [2002]

a) Cereals            b) Marine products
c) Spices              d) Tea

11] Assertion (A): The rate of growth of India’s exports has shown an appreciable increase after 1991: [2000]

Reason (R): The Govt. of India has resorted to devaluation.
a) Both A and R are true, and R is the correct explanation of A
b) Both A and R are true, but R is not a correct explanation of A
c) A is true, but R is false
d) A is false, but R is true

12] Assertion (A): Information technology is fast becoming a very important field of activity in India: [1999]

Reason (R): Software is one of the major exports of the country and India has a very strong base in hardware.
a) Both A and R are true, and R is the correct explanation of A
b) Both A and R are true, but R is not a correct explanation of A
c) A is true, but R is false
d) A is false, but R is true

13] Which one of the following countries has replaced Italy as the major importer of bauxite from India? [1998]

a) Canada           b) Greece
c) Ukraine           d) United Arab Emirates

14] Match List I with List II and select the correct answer by using the codes given below the lists: [1997]

Codes:
a) I-E, II-A, III-B, IV-C
b) I-C, II-A. III-D, IV-B
c) I-A, II-E, III-D, IV-C
d) I-C, II-D, III-A, IV-B

15] Assertion (A): An important policy instrument of economic liberalization is reduction in import duties on capital goods.: [1996]

Reason (R): Reduction in import duties would help the local entrepreneurs to improve technology to face the global markets.
In the context of the above two statements, which one of the following is correct?
a) Both A and R are true and R is the correct explanation of A
b) Both A and R are true and R is not a correct explanation of A
c) A is true but R is false
d) A is false but R is true

16] Which one of the following sets of commodities are exported to India by arid and semi-arid countries in the Middle East? [1996]

a) Raw wool and carpets
b) Fruits and palm oil
c) Precious stones and pearls
d) Perfume and coffee

17] Consider the following items imported by India: [1996]

I. Capital goods
II. Petroleum
III. Pearls and precious stones
IV. Chemicals
V. Iron and Steel

The correct sequence of the decreasing order of these items (as per 94-95 figures), in terms of value, is
a) I, II, III, IV, V                    b) I, II, IV, III, V
c) II, I, III, IV, V                    d) II, I, IV, V, III

18] The new Exim Policy announced in 1992, is for a period of: [1995]

a) 3 years            b) 4 years
c) 7 years             d) 5 years

We’re in the process of posting all the questions from 1995-2023. The tentative date of completion is 16 Dec 2023. We highly recommend purchasing our UPSC Prelims PYQ Book (2024 Edition) to access all questions in a single PDF.

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