External Sector and International Economic Organisations – Economics Questions Asked in SSC & Railway Exams (PYQs with Answers)

SSC Stenographer 2026 – 15 September 2026 Shift 2 · Balance of payments and current account

Q1. What was the economic rationale behind India's move to current account convertibility in 1994, and how did it impact India's external sector and global integration?

(a) It allowed unrestricted capital inflows, including FDI and FPI, to finance domestic development
(b) It enabled full convertibility of the rupee for trade in goods, services, and remittances, thereby liberalizing the external sector without exposing the economy to volatile capital flows
(c) It permitted the RBI to fix the exchange rate of the rupee in line with the gold standard
(d) It reversed the liberalization process by restricting foreign exchange availability to public sector units only

Answer & solution

Answer: (b) It enabled full convertibility of the rupee for trade in goods, services, and remittances, thereby liberalizing the external sector without exposing the economy to volatile capital flows

Answer: Option 2 — It enabled full convertibility of the rupee for trade in goods, services and remittances, liberalising the external sector without exposing the economy to volatile capital flows
The current account covers trade in goods and services, income and remittances.
Making the rupee convertible there in August 1994 let importers, exporters and travellers buy foreign exchange freely at the market rate.
The capital account — FDI, portfolio flows, loans — was deliberately kept only partly convertible, which shielded India during the 1997 Asian crisis.
Revision note — Rupee convertibility and the exchange-rate reforms
• July 1991: the rupee was devalued in two steps (1 and 3 July) by about 18–19 per cent against the US dollar to meet the balance-of-payments crisis.
• March 1992: the Liberalised Exchange Rate Management System (LERMS) created a dual rate — 40 per cent of forex earnings surrendered at the official rate, 60 per cent sold at the market rate.
• March 1993: the two rates were unified and the rupee became market-determined, as recommended by the Rangarajan Committee on the balance of payments.
• August 1994: India accepted Article VIII of the IMF Articles of Agreement, making the rupee fully convertible on the current account.
• The Tarapore Committee (1997, again in 2006) laid down preconditions for capital account convertibility — fiscal deficit, inflation and bank NPA targets; it remains partial even today.
• FEMA, 1999 (in force from 1 June 2000) replaced the restrictive FERA, 1973, treating forex violations as civil rather than criminal offences.
Do not mix these up
• Current account vs capital account convertibility — current account (goods, services, remittances) has been fully convertible since 1994; capital account (investment and loans) is only partly convertible.
• Devaluation vs depreciation — devaluation is a deliberate cut by the government under a fixed rate (1966, 1991); depreciation is a market fall under a floating rate.
Also asked from this topic: when the rupee became convertible on the current account (August 1994); the committee on capital account convertibility (Tarapore Committee); when LERMS began (March 1992).

SSC Stenographer 2026 – 15 September 2026 Shift 2 · Balance of payments and current account

Q2. Which reform measure directly aimed to make Indian exports more competitive post-1991?

(a) Increased Minimum Support Prices (MSP)
(b) Convertibility on current account
(c) Corporate tax exemptions
(d) Crop insurance schemes

Answer & solution

Answer: (b) Convertibility on current account

Answer: Option 2 — Convertibility on current account
The external-sector reforms after 1991 — devaluation, a market-determined exchange rate and then current account convertibility (1994) — priced the rupee realistically.
Exporters could convert earnings at the market rate, and Indian goods became cheaper abroad.
MSP, corporate tax breaks and crop insurance are domestic measures; none of them acts on export prices.
Revision note — External-sector reforms of 1991 and export competitiveness
• The 1991 crisis: forex reserves fell to about two weeks of imports, gold was pledged abroad, and India took an IMF loan.
• The New Economic Policy was announced on 24 July 1991 by Finance Minister Dr Manmohan Singh under Prime Minister P. V. Narasimha Rao.
• Devaluation of the rupee by about 18–19 per cent in July 1991 was the first direct step to boost exports.
• Trade policy shifted from import substitution to export promotion: import licensing was abolished for most goods and quantitative restrictions were removed.
• Peak customs duty was cut from over 300 per cent to 150 per cent in 1991–92 and then steadily lower.
• Export subsidies (cash compensatory support) were withdrawn in July 1991 and replaced by tradable Exim scrips; the EPCG scheme allowed duty-free import of capital goods against export obligations.
• LERMS (March 1992) and a unified market rate (March 1993) led to current account convertibility in August 1994.
• MSP is an agricultural price floor announced on the advice of the CACP; it supports farmers' incomes, not exports.
Do not mix these up
• Current account convertibility vs capital account convertibility — the 1994 step covered trade and remittances; free movement of investment capital was never fully allowed.
• Export promotion vs import substitution — the pre-1991 strategy protected domestic industry with tariffs and licences; the post-1991 strategy opened trade to make exports competitive.
Also asked from this topic: why the rupee was devalued in 1991 (to boost exports and attract foreign exchange); the 1991 external-sector reform (import substitution replaced by export promotion).

SSC Stenographer 2026 – 12 September 2026 Shift 1 · Foreign trade policy and EXIM

Q3. In the context of India's trade and industrial policy in 2025, which of the following best explains the challenges posed by the Inverted Duty Structure (IDS) and the policy measures adopted to mitigate its adverse impact on domestic manufacturing?

(a) IDS occurs when the import duty on finished goods is lower than that on raw materials or intermediate goods, discouraging domestic value addition; to address this, the government has rationalized tariffs and promoted local sourcing under schemes like 'Make in India' and Production Linked Incentives (PLI)
(b) IDS refers to the situation where export duties exceed import duties, encouraging foreign competition at the expense of domestic industries
(c) IDS means that all goods have zero import duties, resulting in complete liberalization of the domestic market without any protective measures
(d) IDS is a pricing strategy used by Indian exporters to undercut global prices, with no relation to tariff structures

Answer & solution

Answer: (a) IDS occurs when the import duty on finished goods is lower than that on raw materials or intermediate goods, discouraging domestic value addition; to address this, the government has rationalized tariffs and promoted local sourcing under schemes like 'Make in India' and Production Linked Incentives (PLI)

Answer: Option 1 — IDS occurs when the import duty on finished goods is lower than that on raw materials or intermediate goods, discouraging domestic value addition; to address this, the government has rationalized tariffs and promoted local sourcing under schemes like 'Make in India' and Production Linked Incentives (PLI)
An inverted duty structure means the input is taxed more than the finished product, so it is cheaper to import the finished good than to make it in India from imported inputs.
The remedy is to cut duties on inputs, rationalise the tariff schedule and make local manufacturing pay through PLI incentives.
Revision note — Inverted duty structure and the policy response
• IDS hurts value addition — a firm importing components at 15 per cent cannot compete with a finished import at 10 per cent; classic cases were textiles, electronics, chemicals and toys.
• Union Budget 2025-26 (1 February 2025) removed seven customs tariff rates, leaving eight (including zero), and exempted basic customs duty on inputs such as critical minerals and EV-battery parts.
• Under GST, IDS builds up unused input tax credit, refundable under Section 54(3) of the CGST Act.
• The 56th GST Council (3 September 2025) corrected inversions in textiles and fertilisers and moved to two main slabs of 5 and 18 per cent from 22 September 2025.
• Make in India was launched on 25 September 2014; the PLI scheme (November 2020) covers 14 sectors with an outlay of about ₹1.97 lakh crore, paid on incremental sales of Indian-made goods.
• A Phased Manufacturing Programme raises duties on finished electronics step by step so that assembly, then components, move to India.
• After the 1991 reforms India's peak customs duty fell from over 200 per cent to about 10 per cent, which is why IDS, rather than high tariffs, is now the main manufacturing complaint.
Do not mix these up
• Inverted duty structure vs tariff escalation — escalation is the normal case, higher duty on the finished good than on inputs; inversion is the reverse.
• Customs duty vs GST inversion — customs IDS is about import tariffs; GST IDS is about the tax rate on inputs exceeding that on output, fixed by refunds or rate changes.
Also asked from this topic: the primary goal of the PLI scheme (to boost domestic manufacturing and attract investment); the number of PLI sectors (14); import tariffs after 1991 (gradually reduced).

SSC Stenographer 2026 – 11 September 2026 Shift 1 · IMF and World Bank Group

Q4. Which major global economic institution provided assistance during India's 1991 crisis, requiring economic reforms?

(a) World Bank
(b) International Monetary Fund (IMF)
(c) Asian Development Bank
(d) United Nations

Answer & solution

Answer: (b) International Monetary Fund (IMF)

Answer: Option 2 — International Monetary Fund (IMF)
In the 1991 balance of payments crisis India took an emergency standby arrangement from the IMF, and it was the IMF's structural adjustment conditions that forced the reform package.
The World Bank lent alongside it, but the balance of payments rescue itself is the IMF's function.
Revision note — The 1991 crisis and the Bretton Woods institutions
• By mid-1991 India's foreign exchange reserves could pay for barely two weeks of imports.
• India pledged about 67 tonnes of gold — 20 tonnes to the Union Bank of Switzerland and 47 tonnes to the Bank of England.
• The IMF and the World Bank together extended roughly US$ 7 billion; their conditions produced the liberalisation, privatisation and globalisation package of 1991.
• The IMF was created at the Bretton Woods Conference of July 1944 and began operations in 1945; headquarters Washington D.C.; India is a founder member.
• The IMF handles short-term balance of payments support and exchange rate stability.
• Its unit of account is the Special Drawing Right (SDR), a basket of the US dollar, euro, Chinese yuan, Japanese yen and pound sterling.
• The World Bank (IBRD), born at the same conference, lends for long-term development projects — the two are called the Bretton Woods twins.
• The rupee was devalued in two steps, on 1 and 3 July 1991, a fall of about 18–19 per cent against the dollar, and partial convertibility followed in 1992.
Do not mix these up
• IMF vs World Bank — the IMF meets a short-term balance of payments gap; the World Bank funds long-term development. Both came out of Bretton Woods, 1944.
• Devaluation vs depreciation — devaluation is a deliberate official cut in a fixed rate, as in July 1991; depreciation is a market-driven fall in a floating rate.
Also asked from this topic: whom India approached for an emergency loan in 1991 (the IMF, with the World Bank); the reserves then (two weeks of imports); the devaluation (18–20 per cent).

SSC Stenographer 2026 – 10 September 2026 Shift 1 · FDI, FPI and FEMA

Q5. Which of the following best explains the core philosophy and operational implications of the Foreign Exchange Regulation Act (FERA), 1973, and why it became incompatible with India's post-1991 economic reforms?

(a) FERA was a liberal law that facilitated easy foreign currency inflows and allowed convertibility on capital account.
(b) FERA treated foreign exchange as a scarce commodity and imposed criminal liability for even minor violations.
(c) FERA primarily regulated exports and agricultural pricing to stabilize the rupee.
(d) FERA was introduced to replace FEMA due to increased globalization.

Answer & solution

Answer: (b) FERA treated foreign exchange as a scarce commodity and imposed criminal liability for even minor violations.

Answer: Option 2 — FERA treated foreign exchange as a scarce commodity and imposed criminal liability for even minor violations.
FERA worked on the rule everything is prohibited unless permitted, because forex was treated as a scarce national resource.
Its offences were criminal, with the burden of proof on the accused — a stance that could not survive an economy being opened to foreign capital after 1991.
Revision note — FERA 1973 and FEMA 1999
• FERA was passed in 1973 and came into force on 1 January 1974, replacing an earlier FERA of 1947.
• Under FERA the presumption was prohibition; even small lapses were criminal offences carrying imprisonment.
• FERA is the law under which Coca-Cola and IBM wound up their Indian operations in 1977 rather than dilute their equity.
• FEMA, the Foreign Exchange Management Act, was enacted in 1999 and came into force on 1 June 2000, repealing FERA.
• Under FEMA the presumption is permission, and a breach is a civil offence punishable with a monetary penalty.
• FEMA splits dealings into current account, which are generally free, and capital account, regulated by the RBI.
• India accepted current account convertibility in 1994 under Article VIII of the IMF; capital account convertibility is still only partial.
• Both laws are enforced by the Enforcement Directorate (ED), set up in 1956 under the Department of Revenue, Ministry of Finance.
Do not mix these up
• FERA vs FEMA — FERA made violations criminal; FEMA makes them civil and compoundable.
• Current vs capital account convertibility — India has the first since 1994, but only partial convertibility on the capital account.
Also asked from this topic: the year FEMA replaced FERA (1999); the year FEMA came into force (1 June 2000); the shortage at the heart of the 1991 crisis (foreign exchange, barely two weeks of imports).

SSC Stenographer 2026 – 10 September 2026 Shift 2 · FDI, FPI and FEMA

Q6. The post-1991 reforms permitted greater inflow of Foreign Direct Investment (FDI) in several sectors. What was the primary objective of this policy shift?

(a) To promote foreign ownership of Indian public sector units
(b) To bridge the savings-investment gap and facilitate technology and managerial know-how transfer
(c) To replace domestic investment with foreign loans
(d) To ensure full capital account convertibility for the rupee

Answer & solution

Answer: (b) To bridge the savings-investment gap and facilitate technology and managerial know-how transfer

Answer: Option 2 — To bridge the savings-investment gap and facilitate technology and managerial know-how transfer
India's domestic savings were too small to fund the investment the economy needed, and FDI is non-debt-creating — it fills that gap without adding to external debt.
It also carries in technology, managerial skill and access to world markets, which a foreign loan does not.
Revision note — FDI and the 1991 reforms
• The New Industrial Policy of 24 July 1991 allowed automatic approval of foreign equity up to 51 per cent in 34 high-priority industries.
• The Foreign Investment Promotion Board (FIPB) cleared proposals outside the automatic route; it was abolished in May 2017 and approvals now go to the administrative ministries.
• FERA, 1973, which treated foreign exchange dealings almost as an offence, was replaced by FEMA, 1999, in force from 1 June 2000.
• FDI policy is framed by the DPIIT under the Ministry of Commerce and Industry; 100 per cent FDI under the automatic route is allowed in many sectors, including coal mining.
• FDI means a lasting interest with management control — conventionally a stake of 10 per cent or more in an enterprise.
• Maharashtra drew the largest share of India's FDI equity inflows in 2024-25, about 31 per cent, followed by Karnataka and Delhi.
Do not mix these up
• FDI vs FPI — FDI brings management control and a lasting interest; foreign portfolio investment buys shares and bonds for returns alone and can leave quickly.
• FDI vs external commercial borrowing — FDI is equity and non-debt-creating; an ECB is a loan that must be repaid with interest.
• Current vs capital account convertibility — the rupee became fully convertible on the current account in 1994; capital account convertibility is still only partial.
Also asked from this topic: the year the FDI limit was liberalised (1991); the top state for FDI equity inflows in 2024-25 (Maharashtra); FDI in coal mining under the automatic route (100 per cent).

SSC Stenographer 2026 – 10 September 2026 Shift 3 · Foreign trade policy and EXIM

Q7. Read the below statements:
1. Trade Policy Reforms removed import licensing for most items.
2. Devaluation of the rupee made imports cheaper.
3. FDI was encouraged post-1991 through automatic approval routes.
Which of the above statements is/are correct?

(a) Only 1 and 2 are correct
(b) Only 1 and 3 are correct
(c) Only 2 and 3 are correct
(d) All 1, 2, and 3 are correct

Answer & solution

Answer: (b) Only 1 and 3 are correct

Answer: Option 2 — Only 1 and 3 are correct
Statements 1 and 3 are right: the 1991 trade reforms abolished import licensing for most items, and FDI was welcomed through the automatic route.
Statement 2 is wrong — devaluation makes the rupee cheaper, so imports become costlier, while exports become cheaper for foreign buyers.
Revision note — Trade and investment reforms of 1991
• The New Industrial Policy was announced on 24 July 1991 by Finance Minister Dr Manmohan Singh under Prime Minister P. V. Narasimha Rao.
• Import licensing was abolished for most goods, quantitative restrictions were dropped and the peak customs duty was cut steeply from over 200 per cent.
• The rupee was devalued in two steps, on 1 and 3 July 1991, a cumulative fall of about 18–19 per cent against the US dollar.
• FDI up to 51 per cent was allowed automatically in 34 high-priority industries in 1991; today most sectors sit on the automatic route, needing no prior government approval.
• The trigger was the balance of payments crisis — reserves had fallen to about two weeks of imports, India pledged gold abroad and borrowed about 7 billion dollars from the IMF and the World Bank.
• Industries reserved for the public sector were cut from 17 to 8, and the asset limits of the MRTP Act on large houses were removed.
Do not mix these up
• Devaluation vs depreciation — devaluation is a deliberate cut under a fixed exchange rate; depreciation is a market fall under a floating rate.
• Imports cheaper vs exports cheaper — after devaluation exports get cheaper abroad and imports get dearer at home. Statement 2 reverses this.
• Automatic route vs government route — the automatic route needs no prior approval, only reporting to the RBI afterwards.
Also asked from this topic: the measure showing trade liberalisation (abolishing import licensing, SSC GD 2026); the July 1991 devaluation (about 18 per cent, SSC CHSL 2025).

SSC Stenographer 2026 – 10 September 2026 Shift 3 · Foreign exchange reserves and exchange rates

Q8. What happened to India’s foreign exchange reserves after the 1991 reforms?

(a) Declined to lowest point
(b) Reached historic highs in following decades
(c) Remained same
(d) Were abolished

Answer & solution

Answer: (b) Reached historic highs in following decades

Answer: Option 2 — Reached historic highs in following decades
Liberalised trade and freer capital inflows reversed the 1991 balance of payments crisis: reserves rose from roughly US$1 billion in 1991 to past US$600 billion in 2021.
The fall to the lowest point happened before the reforms, not after them.
Revision note — The 1991 crisis and the LPG reforms
• In 1991 reserves had shrunk to about two weeks of imports, and India pledged gold with the Bank of England and the Bank of Japan to raise foreign exchange.
• India drew a bailout from the IMF and the World Bank; the reform package is remembered as LPG — Liberalisation, Privatisation and Globalisation.
• The New Industrial Policy was announced on 24 July 1991 by Finance Minister Dr Manmohan Singh under Prime Minister P. V. Narasimha Rao.
• The rupee was devalued twice in July 1991, by about 18 to 19 per cent in all.
• Reserves then climbed steadily, crossing US$100 billion in 2003-04, US$500 billion in 2020 and US$600 billion in 2021.
• India's reserves are held by the RBI and consist of foreign currency assets, gold, SDRs and the reserve tranche position with the IMF.
Do not mix these up
• Devaluation vs depreciation — devaluation is a deliberate cut in a fixed exchange rate by the authorities; depreciation is a fall driven by the market.
• Balance of trade vs balance of payments — the balance of trade counts only goods; the balance of payments covers goods, services, income and capital flows.
Also asked from this topic: what the 1991 crisis was a shortage of (foreign exchange); why the reforms lifted reserves (higher exports and capital inflows); the effect on FDI (a sharp rise).

SSC Stenographer 2026 – 9 September 2026 Shift 1 · Foreign trade policy and EXIM

Q9. What was the main objective of India's 'Import Substitution Policy' adopted post-independence?

(a) To increase the export of Indian manufactured goods
(b) To attract foreign direct investment (FDI) into key industries
(c) To protect domestic industries from foreign competition
(d) To liberalize trade and integrate with the global economy

Answer & solution

Answer: (c) To protect domestic industries from foreign competition

Answer: Option 3 — To protect domestic industries from foreign competition
Import substitution meant replacing imported goods with goods made at home, shielding infant domestic industries behind tariffs and quotas until they could compete.
Revision note — Import substitution and the inward-looking years
• Import substitution industrialisation (ISI) was India's trade strategy through the first seven Five Year Plans, roughly 1950 to 1990. It was an inward-looking policy aiming at self-reliance.
• Its tools were high tariffs, import quotas and licensing, and a large protected public sector.
• It was built into the Second Five Year Plan (1956–61) on the Mahalanobis model, which put heavy and capital goods industries first.
• The Industrial Policy Resolution, 1956 went with it, giving the state the commanding heights of the economy.
• Foreign capital was restricted in these years, not courted — FERA, 1973 tightened the rules on foreign exchange and foreign companies.
• The strategy was reversed by the 1991 LPG reforms, under Finance Minister Manmohan Singh and Prime Minister P. V. Narasimha Rao, shaped by the conditions attached to the IMF and World Bank loan.
Do not mix these up
• Import substitution vs export promotion — import substitution replaces imports at home; export promotion pushes domestic goods into world markets. India turned to the second only after 1991.
• Liberalisation vs globalisation — liberalisation loosens internal controls on Indian producers; globalisation opens the economy outward to world markets.
Also asked from this topic: the name of India's inward-looking trade strategy in the early Plans (import substitution);
its main rationale (to protect infant domestic industries); the plan built on the Mahalanobis model (Second Five Year Plan);
the Prime Minister who initiated the 1991 LPG reforms (P. V. Narasimha Rao).

RRB Group D 2025-26 – 21 August 2026 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q10. Which country officially adopted the euro as its national currency on 1 January 2026, becoming the 21st member of the Eurozone?

(a) Romania
(b) Hungary
(c) Croatia
(d) Bulgaria

Answer & solution

Answer: (d) Bulgaria

Correct Answer:
Correct Answer: Option 4 – Bulgaria
Explanation:
Bulgaria officially adopted the euro as its national currency on1 January 2026, becoming the21st member state of the Eurozone, confirmed by the European Central Bank, the Council of the EU, and multiple news reports (Euronews, GreekReporter, PIB/newsonair).
Important Facts:
• Bulgaria's currency before the euro was the Bulgarian Lev (BGN), pegged to the euro since 1999.
• Croatia was the 20th Eurozone member (adopted euro on 1 January 2023).
• Bulgaria's capital is Sofia; PM at the time was Rosen Zhelyazkov.

RRB Group D 2025-26 – 17 August 2026 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q11. India assumed the Chairship of which international grouping for the year 2026?

(a) OECD
(b) ASEAN
(c) BRICS
(d) G7

Answer & solution

Answer: (c) BRICS

India's BRICS Chairship 2026
India officially assumed theChairship of BRICSfor the year 2026 (from January 1, 2026), hosting related events such as the BRICS Sherpa meeting in New Delhi, with the theme 'Building for Resilience, Innovation, Cooperation and Sustainability.'
Correct Answer: BRICS (Option 3)

RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 1 · WTO

Q12. The General Agreement on Tariffs and Trade (GATT) was signed in which of the following years?

(a) 1947
(b) 1946
(c) 1944
(d) 1995

Answer & solution

Answer: (a) 1947

GATT (General Agreement on Tariffs and Trade)
Signed:30 October 1947in Geneva, Switzerland
Purpose: Reduce tariffs and trade barriers globally
Note: GATT was replaced byWTO in 1995
Answer: Option 1 → 1947

RRB NTPC UG CBT-1 2025-26 – 19 June 2026 Shift 2 · Foreign trade policy and EXIM

Q13. India followed which strategy to reduce dependence on foreign goods after independence?

(a) Free trade
(b) Dollarisation
(c) Import substitution
(d) Export-led growth

Answer & solution

Answer: (c) Import substitution

Post-Independence Economic Strategy
After 1947, India adoptedImport Substitution Industrialization (ISI)
Key Features:
• Domestic production of goods previously imported
• High tariffs and import restrictions to protect local industries
• Focus on self-reliance (Swadeshi approach)
• Development of heavy industries and public sector
This reduced dependence on foreign goods and promoted indigenous manufacturing.
Answer: Option 3 → Import substitution

RRB NTPC UG CBT-1 2025-26 – 17 June 2026 Shift 2 · WTO

Q14. India became a member of the World Trade Organization (WTO) to boost global trade participation. In which year did India join the WTO?

(a) 1993
(b) 2001
(c) 1995
(d) 1991

Answer & solution

Topic: International Organizations - WTO
TheWorld Trade Organization (WTO)was established on January 1, 1995, replacing GATT (General Agreement on Tariffs and Trade).
India was a founding member of GATT (1947) and became one of the founding members of WTO when it was formed.
India joined WTO on January 1, 1995as one of the original 164 member countries.
Answer: Option 3 → 1995

RRB NTPC UG CBT-1 2025-26 – 14 June 2026 Shift 2 · ADB, AIIB, NDB and other banks

Q15. Which of the following countries became a member of the BRICS’ New Development Bank in May 2025?

(a) Algeria
(b) Tiawan
(c) Luxumberg
(d) Ethopia

Answer & solution

Answer: (a) Algeria

BRICS New Development Bank (NDB) - May 2025
Algeriabecame a member of the BRICS New Development Bank in May 2025.
NDB was established in 2014 by BRICS nations (Brazil, Russia, India, China, South Africa).
Algeria joined as part of the bank's expansion to include more developing economies.
Answer: Option 1 → Algeria

RRB NTPC UG CBT-1 2025-26 – 13 June 2026 Shift 2 · ADB, AIIB, NDB and other banks

Q16. Which country joined as the 9th member of New Development Bank by BRICS in 2025?

(a) Myanmar
(b) Algeria
(c) Brunei
(d) Vietnam

Answer & solution

Answer: (b) Algeria

New Development Bank (NDB) - 9th Member
NDB was established by BRICS nations in 2014.
Original members: Brazil, Russia, India, China, South Africa.
Previous additions: Bangladesh, UAE, Egypt, Uruguay.
Algeria joined as the 9th member in 2025.
Algeria became the first African country after South Africa to join NDB.
Answer: Option 2 → Algeria

SSC GD 2026 – 31 May 2026 Shift 1 · Foreign exchange reserves and exchange rates

Q17. By how much was the Indian Rupee devalued in July 1991 to address the Balance of Payments crisis?

(a) 5-7%
(b) 18-20%
(c) 30-35%
(d) 50%

Answer & solution

Answer: (b) 18-20%

Correct Answer: 18-20% (Option 2)
In July 1991, India was facing a severe Balance of Payments ( BoP ) crisis — foreign exchange reserves had fallen to less than 2 weeks of import cover. As part of the economic liberalisation reforms under Finance Minister Manmohan Singh, the Indian Rupee was devalued by approximately 18-20% in two steps (July 1 and July 3, 1991). This devaluation made Indian exports cheaper and helped restore confidence in the economy.
Why others are wrong:
- 5-7%: Too small a devaluation; would not have been effective in addressing the crisis.
- 30-35%: An exaggerated figure; the actual devaluation was around 18-20%.
- 50%: This drastic a devaluation was not carried out in 1991.

SSC GD 2026 – 30 May 2026 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q18. Which BRICS Summit was held in Beijing in 2022?

(a) 12th
(b) 13th
(c) 14th
(d) 15th

Answer & solution

Answer: (c) 14th

Correct Answer: 14th (Option 3)
The 14th BRICS Summit was held virtually from Beijing, China on June 23-24, 2022, hosted under the theme "Foster High-quality BRICS Partnership, Usher in a New Era for Global Development." China held the BRICS Presidency in 2022.
Why others are wrong:
- 12th: The 12th BRICS Summit was held in Russia in 2020.
- 13th: The 13th BRICS Summit was hosted by India in 2021.
- 15th: The 15th BRICS Summit was held in South Africa in 2023.

SSC GD 2026 – 30 May 2026 Shift 1 · Foreign trade policy and EXIM

Q19. During the planning era, what was the objective of Import Substitution Industrialization (ISI) in India?

(a) Promote export of manufactured goods to earn foreign exchange
(b) Attract foreign investment in consumer goods industries
(c) Replace imports of manufactured goods with domestic production through protectionist policies
(d) Liberalize imports of machinery and capital goods without any restrictions

Answer & solution

Answer: (c) Replace imports of manufactured goods with domestic production through protectionist policies

Correct Answer: Replace imports of manufactured goods with domestic production through protectionist policies — Option (c)
The objective of ISI was to replace imports of manufactured goods with domestic production through protectionist policies. About Import Substitution Industrialization (ISI): Definition: An inward-looking trade policy strategy that aims to replace foreign imports with domestic production; Period in India: Primarily from Independence (1947) to the economic reforms of 1991; Policy approach: HIGH PROTECTIONISM: High tariffs and import duties on manufactured goods; Quantitative restrictions (QRs) and import licensing; Industrial licensing (License Raj); Foreign exchange controls; Public sector investment in heavy industries; Key objectives: Reduce dependence on foreign manufactured goods; Build domestic industrial capacity; Save foreign exchange; Achieve economic self-sufficiency and self-reliance; Rationale for ISI in India: Post-colonial India faced: Underdeveloped industrial base; Chronic foreign exchange shortages; Need to industrialize rapidly; Belief in Nehruvian socialism and planned development; 'Infant industry' argument: Domestic industries need protection from established foreign competition to grow; Key policies under ISI: High import duties on manufactured goods; Public sector steel plants, heavy engineering; MRTP Act (Monopolies and Restrictive Trade Practices); FERA (Foreign Exchange Regulation Act); Limitations of ISI: Led to inefficiency and lack of competition; Created 'License Raj' and corruption; Import substitution succeeded in creating industries but not in making them globally competitive; High cost of domestically produced goods; India moved away from ISI after the 1991 reforms (shifted to export-led growth and globalization).
Option (a) Promote export of manufactured goods to earn foreign exchange — Incorrect: Promoting exports was NOT the objective of Import Substitution Industrialization (ISI); ISI was specifically an INWARD-LOOKING strategy focused on domestic production to REPLACE imports — not on exports; export promotion is the OPPOSITE strategy (outward-looking), adopted by countries like South Korea, Taiwan, Singapore; India shifted to export promotion AFTER the 1991 reforms, not during the ISI era.
Option (b) Attract foreign investment in consumer goods industries — Incorrect: Attracting foreign investment was NOT the objective of Import Substitution Industrialization; ISI was about domestic production replacing imports; India during the ISI era was actually quite restrictive about foreign investment (FERA 1973 restricted FDI); the ISI policy aimed to develop DOMESTIC industry through protectionism, NOT to attract foreign companies.
Option (d) Liberalize imports of machinery and capital goods without any restrictions — Incorrect: Liberalizing imports was the OPPOSITE of ISI's objective; ISI was a protectionist, import-restricting policy; it imposed HIGH tariffs, quotas, and licensing to REDUCE imports; liberalization of imports began AFTER the 1991 reforms (LPG) when India moved away from ISI; the correct objective of ISI was to replace imports with domestic production through protectionist policies.

SSC GD 2026 – 27 May 2026 Shift 1 · Foreign trade policy and EXIM

Q20. Which institution is responsible for formulating and
implementing India's Foreign Trade Policy?

(a) Reserve Bank of India (RBI)
(b) NITI Aayog
(c) Directorate General of Foreign Trade (DGFT)
(d) Ministry of Home Affairs

Answer & solution

Answer: (c) Directorate General of Foreign Trade (DGFT)

Correct Answer: Directorate General of Foreign Trade (DGFT) — Option (c)
The Directorate General of Foreign Trade (DGFT) is responsible for formulating and implementing India's Foreign Trade Policy. About DGFT: Full name: Directorate General of Foreign Trade; Ministry: Under the Ministry of Commerce and Industry, Government of India; Headquarters: New Delhi (with regional offices across India); Mandate: Formulate and implement India's Foreign Trade Policy (FTP); Key functions of DGFT: Formulating the Foreign Trade Policy (FTP): India's FTP is announced for a 5-year period (e.g., FTP 2023-28 was announced in April 2023); It governs India's exports and imports; Issuing IEC (Import Export Code): All importers and exporters must obtain a 10-digit IEC from DGFT; Administering export promotion schemes: MEIS (Merchandise Exports from India Scheme) — now replaced by RoDTEP ; SEIS (Service Exports from India Scheme); EPCG (Export Promotion Capital Goods) scheme; Advance Authorization Scheme; Special Economic Zones (SEZ) matters; Maintaining SCOMET list: Special Chemicals, Organisms, Materials, Equipment and Technologies — for controlling sensitive exports; About India's Foreign Trade Policy (FTP): Provides guidance on exports and imports; Sets targets for export growth; Outlines incentives for exporters; About other institutions: RBI: India's central bank — manages monetary policy, banking regulation, foreign exchange (FEMA) — NOT foreign trade policy; NITI Aayog: Government's planning body — provides policy recommendations but does NOT implement trade policy; Ministry of Home Affairs: Manages internal security, police, borders (not foreign trade).
Option (a) Reserve Bank of India (RBI) — Incorrect: The RBI manages India's monetary policy, banking regulation, and foreign exchange reserves under FEMA (Foreign Exchange Management Act) — it does NOT formulate or implement Foreign Trade Policy; that responsibility lies with the DGFT under the Ministry of Commerce and Industry.
Option (b) NITI Aayog — Incorrect: NITI Aayog (National Institution for Transforming India) is the government's policy think tank and planning body — it advises on economic and social policy but does NOT formulate or implement the Foreign Trade Policy; DGFT under the Ministry of Commerce is responsible for FTP.
Option (d) Ministry of Home Affairs — Incorrect: The Ministry of Home Affairs manages internal security, central armed police forces, border management, and centre -state relations — it has no role in formulating or implementing Foreign Trade Policy; DGFT under the Ministry of Commerce and Industry handles India's trade policy.

SSC GD 2026 – 27 May 2026 Shift 2 · Foreign trade policy and EXIM

Q21. Where was India's first Export Processing Zone (EPZ) established?

(a) Paradip
(b) Kandla
(c) Mundra
(d) Haldia

Answer & solution

Answer: (b) Kandla

Correct Answer: Kandla — Option (b)
India's first Export Processing Zone (EPZ) was established at Kandla, Gujarat in 1965. About India's Export Processing Zones (EPZ) and SEZs: First EPZ: Kandla EPZ (KEPZ) — established in 1965 in Kandla, Gujarat; Kandla EPZ was the first EPZ in Asia; Later renamed as: Kandla Special Economic Zone (KASEZ); About EPZs: Export Processing Zones are industrial estates where goods are manufactured for export under favourable conditions (duty-free imports of raw materials, simplified procedures); They were precursors to SEZs (Special Economic Zones); All EPZs in India (established before SEZ Act 2005): Kandla EPZ (Gujarat) — 1965; Santa Cruz Electronics Export Processing Zone (SEEPZ), Mumbai — 1973; Falta EPZ, West Bengal — 1984; Madras EPZ, Tamil Nadu — 1984; Noida EPZ, Uttar Pradesh — 1985; Cochin EPZ, Kerala — 1984; Visakhapatnam EPZ, Andhra Pradesh — 1989; SEZ Act, 2005: Replaced EPZs with SEZs (Special Economic Zones); SEZs offer more incentives including tax exemptions for up to 15 years; About Kandla Port/DEENDAYAL Port: Kandla Port (now Deendayal Port) is in the Kutch district of Gujarat; One of India's major ports; India's first SEZ was established here in 1965 (as EPZ); Kandla was also the first planned port developed after independence.
Option (a) Paradip — Incorrect: Paradip (in Odisha) is a major port city but India's first EPZ was NOT established there; Paradip is known for its petroleum refinery and iron ore handling; the first EPZ was at Kandla, Gujarat in 1965.
Option (c) Mundra — Incorrect: Mundra (in Gujarat) is home to the Adani Group's private port (India's largest commercial port by volume) but India's first EPZ was NOT at Mundra; Mundra Port was developed much later in the private sector era; the first EPZ was at Kandla, Gujarat in 1965.
Option (d) Haldia — Incorrect: Haldia (in West Bengal) is a major port and industrial city but India's first EPZ was NOT established there; Haldia became an industrial hub later; the first EPZ was at Kandla, Gujarat in 1965; West Bengal's EPZ (Falta EPZ) was established in 1984.

SSC GD 2026 – 25 May 2026 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q22. MERCOSUR is a trading bloc associated with which of the following continents?

(a) Asia
(b) Europe
(c) Africa
(d) South America

Answer & solution

Answer: (d) South America

Correct Answer: South America — Option (d)
MERCOSUR is a trading bloc associated with South America. About MERCOSUR: Full name: Mercado Común del Sur (Southern Common Market) in Spanish; Established: 26 March 1991 by the Treaty of Asunción; Headquarters: Montevideo, Uruguay; Full members: Argentina, Brazil, Paraguay, Uruguay, and Bolivia (Bolivia joined in 2024); Associate members: Chile, Colombia, Ecuador, Guyana, Peru, Suriname; Suspended member: Venezuela (suspended since 2016 for breach of democratic clause); About MERCOSUR's role: The largest trading bloc in Latin America; Allows free movement of goods, services, people, and capital among member countries; Accounts for approximately 70% of South America's GDP; Total GDP: Approximately US$ 2.2 trillion; Total population: Around 280 million people; MERCOSUR-EU Agreement: MERCOSUR and the European Union signed a historic trade agreement in 2019 (though full ratification was still pending); India-MERCOSUR: India and MERCOSUR signed a Preferential Trade Agreement (PTA) in 2004; MERCOSUR and trade: The bloc promotes reduced tariffs and common external tariffs among members; Functions similarly to the EU in terms of regional economic integration; Headquarters: Permanent administrative offices in Montevideo, Uruguay.
Option (a) Asia — Incorrect: MERCOSUR is a South American trading bloc — not an Asian organization; Asia has its own trade groupings like ASEAN (Southeast Asia), SAARC (South Asia), RCEP (Asia-Pacific).
Option (b) Europe — Incorrect: MERCOSUR is NOT a European trading bloc — Europe has the European Union (EU) as its major trade and political bloc; MERCOSUR is based in South America.
Option (c) Africa — Incorrect: MERCOSUR has no connection to Africa; Africa has its own regional economic communities like the African Union (AU), ECOWAS, SADC, etc.; MERCOSUR is specifically a South American trading bloc. The candidate selected this incorrect option.

SSC GD 2026 – 25 May 2026 Shift 3 · WTO

Q23. Global Trade Outlook and Statistics 2025 was published by which of the following?

(a) UNESCO
(b) International Monetary Fund
(c) World Trade Organization
(d) World Bank

Answer & solution

Answer: (c) World Trade Organization

Correct Answer: World Trade Organization (WTO) — Option (c)
The Global Trade Outlook and Statistics 2025 was published by the World Trade Organization (WTO). About Global Trade Outlook and Statistics: Published by: World Trade Organization (WTO); This is an annual flagship publication of the WTO; Content: Comprehensive analysis of global merchandise and commercial services trade; Includes: Current trade statistics and trends; Projections for global trade growth; Regional trade performance analysis; Sectoral trade breakdowns (agriculture, manufacturing, mining, services); Impact of economic conditions, geopolitical events on trade; The 2025 edition analyzed trade flows in the context of global economic recovery, inflation, supply chain disruptions, and geopolitical tensions; About WTO (World Trade Organization): Established: January 1, 1995 (replaced GATT); Headquarters: Geneva, Switzerland; Director General: Ngozi Okonjo-Iweala (since March 2021); Members: 164 member countries (as of 2024); Functions: Sets rules for international trade, resolves trade disputes, provides forum for trade negotiations; India is a founding member of WTO; Key WTO publications: World Trade Report, Global Trade Outlook and Statistics, Aid for Trade at a Glance; About other organizations: UNESCO: United Nations Educational, Scientific and Cultural Organization — publishes education and culture reports, NOT trade statistics; IMF: Publishes World Economic Outlook, Global Financial Stability Report; World Bank: Publishes World Development Report, Doing Business Report.
Option (a) UNESCO — Incorrect: UNESCO (United Nations Educational, Scientific and Cultural Organization) publishes reports on education, science, culture, and communication — it does NOT publish Global Trade Outlook and Statistics; that is a WTO publication.
Option (b) International Monetary Fund — Incorrect: The IMF publishes World Economic Outlook, Global Financial Stability Report, and Fiscal Monitor — it does NOT publish the Global Trade Outlook and Statistics; that report is published by the WTO.
Option (d) World Bank — Incorrect: The World Bank publishes World Development Report, Doing Business Report, Global Economic Prospects — it does NOT publish Global Trade Outlook and Statistics; the WTO is the correct publisher of this trade-focused report.

SSC GD 2026 – 21 May 2026 Shift 2 · Foreign trade policy and EXIM

Q24. What was India's share of service exports in global service exports in 1993?

(a) 0.5%
(b) 5%
(c) 8%
(d) 12%

Answer & solution

Answer: (a) 0.5%

Correct Answer: 0.5% — Option (a)
India's share of service exports in global service exports in 1993 was approximately 0.5%. Historical context: In 1993, India's service exports were relatively modest — before the IT and software services boom that transformed India's export profile; Economic Liberalization: India began economic liberalization in 1991 (after the balance of payments crisis) — the IT sector was just beginning to scale up; India's service exports in 1993 were dominated by traditional services; Growth of Indian service exports: After liberalization, India's IT/BPO sector grew dramatically — by 2005-06, India had become one of the world's top service exporters; India's share of global service exports has since grown significantly (to about 3-4% by the early 21st century, and even higher in IT services); India's journey in services: From a 0.5% share in 1993 to becoming a major global hub for IT services, BPO, financial services, and professional services represents one of the most dramatic economic transformations in the post-liberalization era; Key reference: This data point is often cited in discussions of India's economic liberalization and its impact on service sector growth.
Option (b) 5% — Incorrect: India's share of global service exports in 1993 was much lower than 5%; it was approximately 0.5%; a 5% share would have made India a very significant service exporter even in 1993, which was not the case before the IT boom.
Option (c) 8% — Incorrect: India's share of global service exports in 1993 was approximately 0.5%, far below 8%; an 8% share would represent a major global service exporter — India only achieved significant shares after the IT services revolution of the late 1990s and 2000s.
Option (d) 12% — Incorrect: 12% is far above India's actual share of global service exports in 1993; India's share was approximately 0.5% in 1993; even today India's share of total world service exports is in the 3-4% range (though its share in IT services specifically is much higher). The candidate selected this incorrect option.

SSC GD 2026 – 18 May 2026 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q25. In which city was the 8th BRICS Summit held in 2016?

(a) Goa, India
(b) Ufa, Russia
(c) Johannesburg, South Africa
(d) Beijing, China

Answer & solution

Answer: (a) Goa, India

Correct Answer: Goa, India — Option (a)
The 8th BRICS Summit was held in Goa, India on 15–16 October 2016, under India's chairmanship. The theme was 'Building Responsive, Inclusive and Collective Solutions.' BRICS is an acronym for the association of five major emerging economies: Brazil, Russia, India, China, and South Africa. Key outcomes of the Goa Summit included discussions on counter-terrorism, trade, economic cooperation, and a special focus on India-Africa cooperation. India's Prime Minister Narendra Modi hosted the summit, which saw bilateral meetings with leaders of all BRICS nations. The Goa Declaration emphasised stronger cooperation among BRICS nations on various global challenges.
Option (b) Ufa, Russia — Incorrect: The 7th BRICS Summit was held in Ufa, Russia in 2015 (not 2016). The 8th Summit was in Goa, India.
Option (c) Johannesburg, South Africa — Incorrect: Johannesburg hosted the 10th BRICS Summit in 2018; the 8th Summit in 2016 was in Goa, India.
Option (d) Beijing, China — Incorrect: China has hosted BRICS Summits (e.g., 9th in Xiamen, 2017), but the 8th BRICS Summit in 2016 was in Goa, India.

RRB NTPC UG CBT-1 2025-26 – 9 May 2026 Shift 2 · FDI, FPI and FEMA

Q26. The Foreign Exchange Management Act (FEMA) was enacted in 1999 to replace the earlier FERA law. In which year did FEMA officially come into force?

(a) 2000
(b) 1999
(c) 1997
(d) 2002

Answer & solution

Answer: (a) 2000

Topic: Foreign Exchange Management Act (FEMA)
FEMA was enacted by Parliament in 1999 to replace FERA (Foreign Exchange Regulation Act, 1973).
The Act received Presidential assent in 1999 but came into force onJune 1, 2000.
FEMA liberalized foreign exchange regulations and shifted focus from regulation to management.
Answer: Option 1 → 2000

RRB NTPC UG CBT-1 2025-26 – 8 May 2026 Shift 1 · Balance of payments and current account

Q27. In the Balance of Payments, an increase in foreign exchange reserves appears under which category?

(a) Capital Account – Debit
(b) Current Account – Credit
(c) Capital Account – Credit
(d) Current Account – Debit

Answer & solution

Answer: (a) Capital Account – Debit

Balance of Payments Structure:
Foreign Exchange Reserves are part ofCapital Account.
When reservesincrease→ Country acquires foreign assets
This is anoutflow of capital(use of funds)
In BoP accounting:
Outflow/Use of funds =Debit entry
Inflow/Source of funds = Credit entry
Therefore: Increase in forex reserves = Capital Account Debit
Answer: Option 1 → Capital Account – Debit

RRB NTPC UG CBT-1 2025-26 – 8 May 2026 Shift 3 · FDI, FPI and FEMA

Q28. Which of the following agreements signed between India and Uzbekistan officially came into effect in May 2025, having been signed in September 2024 in Tashkent?

(a) Comprehensive Economic Partnership Agreement (CEPA)
(b) Bilateral Investment Treaty (BIT)
(c) Mutual Logistics Support Agreement (MLSA)
(d) Double Taxation Avoidance Agreement (DTAA)

Answer & solution

Answer: (b) Bilateral Investment Treaty (BIT)

India-Uzbekistan Bilateral Investment Treaty (BIT)
Key Facts:
• Signed in September 2024 during PM Modi's visit to Tashkent
• Officially came into effect in May 2025
• Aims to promote and protect investments between both nations
• Provides legal framework for bilateral investment protection
Answer: Option 2 → Bilateral Investment Treaty (BIT)

SSC GD 2026 – 7 May 2026 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q29. Which country hosted the 4th BRICS Summit in 2012?

(a) Brazil
(b) China
(c) India
(d) South Africa

Answer & solution

Answer: (c) India

Correct Answer: India — Option (c)
The 4th BRICS Summit was hosted by India in New Delhi on March 29, 2012. Indian Prime Minister Manmohan Singh chaired the summit. The theme was 'BRICS Partnership for Global Stability, Security and Prosperity'. The Delhi Declaration was issued, covering issues such as global economic governance, the Eurozone crisis, food and energy security, and sustainable development. The summit also saw the announcement of the BRICS Development Bank concept (which later became the New Development Bank).
Option (a) Brazil — Incorrect: Brazil hosted the 2nd BRIC Summit (2010) in Brasilia; the 4th BRICS Summit (2012) was in New Delhi, India.
Option (b) China — Incorrect: China hosted the 3rd BRICS Summit in Sanya in 2011; the 4th was in India in 2012.
Option (d) South Africa — Incorrect: South Africa hosted the 5th BRICS Summit in Durban in 2013 (the first with South Africa as the 'S' in BRICS); the 4th was in India.

SSC GD 2026 – 7 May 2026 Shift 2 · Foreign exchange reserves and exchange rates

Q30. In a fixed exchange rate system, when the exchange rate is increased by a government action, it is called _____, which makes
the domestic currency cheaper.

(a) Depreciation
(b) Appreciation
(c) Devaluation
(d) Revaluation

Answer & solution

Answer: (c) Devaluation

Correct Answer: Devaluation — Option (c)
In a fixed exchange rate system, Devaluation is the deliberate official lowering of a country's currency value relative to a foreign currency or standard. When the government increases the exchange rate (i.e., more domestic currency units are needed to buy one unit of foreign currency), the domestic currency becomes cheaper (weaker). For example, if India officially changes the rate from ₹70/$ to ₹85/$, the rupee is devalued. Devaluation makes exports cheaper and imports costlier. It is a policy tool used to boost exports and correct balance of payments deficits.
Option (a) Depreciation — Incorrect: Depreciation also means the domestic currency becoming cheaper, but it occurs in a FLOATING exchange rate system through market forces, NOT by government action; devaluation is the correct term for a government-initiated reduction in fixed exchange rate systems.
Option (b) Appreciation — Incorrect: Appreciation (or Revaluation in fixed systems) means the domestic currency becomes STRONGER/MORE expensive; it is the opposite of devaluation.
Option (d) Revaluation — Incorrect: Revaluation is the official INCREASE in the value of a currency in a fixed exchange rate system (making it more expensive), which is the opposite of devaluation.

SSC GD 2026 – 7 May 2026 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q31. In which country was the 2nd BRIC Summit organised in 2010?

(a) Russia
(b) India
(c) Brazil
(d) China

Answer & solution

Answer: (c) Brazil

Correct Answer: Brazil — Option (c)
The 2nd BRIC Summit was held in Brasilia, Brazil, on April 16, 2010. Brazilian President Luiz Inácio Lula da Silva hosted the summit. The leaders of Brazil, Russia, India, and China (BRIC — before South Africa joined to make it BRICS in 2011) attended. Key discussions included global economic governance, reform of international financial institutions, and strengthening of multilateral trade. The Brasilia Declaration was issued at the conclusion. The 1st BRIC Summit was held in Yekaterinburg, Russia, in 2009.
Option (a) Russia — Incorrect: Russia hosted the 1st BRIC Summit in Yekaterinburg (2009); the 2nd Summit was in Brazil in 2010.
Option (b) India — Incorrect: India hosted the 3rd BRIC Summit in Sanya (no — wait, India hosted the 4th BRICS Summit in New Delhi in 2012); the 2nd was in Brazil.
Option (d) China — Incorrect: China hosted the 3rd BRIC Summit in Sanya, Hainan, in 2011; the 2nd was in Brazil in 2010.

RRB NTPC UG CBT-1 2025-26 – 7 May 2026 Shift 1 · FDI, FPI and FEMA

Q32. In which year did FEMA replace FERA?

(a) 1998
(b) 1994
(c) 1990
(d) 1999

Answer & solution

Answer: (d) 1999

FEMA (Foreign Exchange Management Act)
FERA (Foreign Exchange Regulation Act, 1973) was replaced by FEMA in1999.
FEMA came into effect onJune 1, 2000.
Key difference: FERA was regulatory, FEMA is management-oriented.
Answer: Option 4 → 1999

SSC GD 2026 – 5 May 2026 Shift 2 · Foreign trade policy and EXIM

Q33. India's trade policy in the 1950s–1980s emphasized ___.

(a) Complete liberalization
(b) Import substitution and protectionism
(c) Export promotion through free trade
(d) Foreign portfolio investment

Answer & solution

Answer: (b) Import substitution and protectionism

Correct Answer: Import substitution and protectionism — Option (b)
From the 1950s to the 1980s, India's trade policy was characterized by Import Substitution Industrialization (ISI) and strong protectionism. The government imposed high tariffs, import licensing, quantitative restrictions, and foreign exchange controls to protect domestic industries from foreign competition. The aim was to develop self-sufficiency and reduce dependence on imports by building domestic manufacturing capacity. This policy was largely abandoned after the 1991 economic reforms.
Option (a) Complete liberalization — Incorrect: Complete liberalization was introduced only after 1991; the pre-1991 era was marked by heavy state controls and protectionism.
Option (c) Export promotion through free trade — Incorrect: India's pre-1991 policy focused inward on import substitution, not on promoting exports through free trade.
Option (d) Foreign portfolio investment — Incorrect: Foreign portfolio investment was discouraged before 1991; India maintained strict capital controls and FDI restrictions.

SSC GD 2026 – 5 May 2026 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q34. Where was the 13th BRICS Summit held in 2021?

(a) Beijing, China
(b) New Delhi, India
(c) Moscow, Russia
(d) Johannesburg, South Africa

Answer & solution

Answer: (b) New Delhi, India

Correct Answer: New Delhi, India — Option (b)
The 13th BRICS Summit was held on September 9, 2021, hosted by India under its BRICS Chairship . Due to the COVID-19 pandemic, the summit was held virtually (online). Indian Prime Minister Narendra Modi chaired the summit. The theme was 'BRICS@15: Intra-BRICS Cooperation for Continuity, Consolidation and Consensus'. The summit discussed issues such as counter-terrorism, trade, health cooperation, and multilateral reforms.
Option (a) Beijing, China — Incorrect: China hosted the 14th BRICS Summit in 2022, not the 13th. The 13th was hosted by India.
Option (c) Moscow, Russia — Incorrect: Russia hosted the 12th BRICS Summit in 2020 (virtually); the 13th was hosted by India in 2021.
Option (d) Johannesburg, South Africa — Incorrect: South Africa hosted the 15th BRICS Summit in 2023 (and also the 10th in 2018); the 13th was held under India's chairship .

SSC GD 2026 – 28 April 2026 Shift 1 · Foreign trade policy and EXIM

Q35. Which Indian port was established as the site of India's first Export Processing Zone (EPZ)?

(a) Surat
(b) Kandla
(c) Mumbai
(d) Cochin

Answer & solution

Answer: (b) Kandla

Correct Answer: Kandla — Option (b)
India's first Export Processing Zone (EPZ) was established at Kandla (now Deendayal Port) in Gujarat in 1965. It is also considered one of Asia's first Export Processing Zones. Kandla EPZ (now known as Kandla Special Economic Zone — KASEZ) was set up to: Boost export-led manufacturing; Attract foreign investment; Generate employment; Earn foreign exchange. The choice of Kandla was strategic due to its location as a major port on the Gulf of Kutch (Arabian Sea coast), giving it easy access to international shipping routes. Over the decades, Kandla EPZ evolved into a Special Economic Zone under the SEZ Act 2005. It hosts units in sectors like engineering goods, chemicals, pharmaceuticals, gems and jewellery , and textiles. India subsequently established EPZs at Santa Cruz (Mumbai), Falta (Kolkata), Madras, Cochin, Noida, and Visakhapatnam.
Option (a) Surat — Incorrect: Surat is a major textile and diamond trading city in Gujarat but was not the location of India's first Export Processing Zone; Kandla (also in Gujarat) holds that distinction (established 1965).
Option (c) Mumbai — Incorrect: Mumbai (Santacruz) had India's second EPZ established at Santa Cruz Electronics Export Processing Zone (SEEPZ); the first EPZ was at Kandla, not Mumbai.
Option (d) Cochin — Incorrect: Cochin (Kochi) EPZ was established later, after Kandla's EPZ (1965); it was not the first Export Processing Zone in India.

SSC GD 2026 – 28 April 2026 Shift 3 · Balance of payments and current account

Q36. What is the main deficiency of India's trade balance?

(a) Surplus export of services
(b) Excessive dependence on certain trading partners
(c) Persistent trade deficit due to imports
(d) High tariff structure

Answer & solution

Answer: (c) Persistent trade deficit due to imports

Correct Answer: Persistent trade deficit due to imports — Option (c)
India's trade balance (merchandise/goods trade) has consistently shown a deficit — i.e., India's imports of goods far exceed its exports of goods — and this is the main structural deficiency of India's trade balance. Key reasons for India's persistent trade deficit: High import bill for crude oil and petroleum products (India imports ~85% of its oil needs); Large imports of gold and precious metals; Significant imports of electronic goods, machinery, and capital equipment; Growing imports of coal and natural gas; India's merchandise trade deficit has widened over the years, often exceeding $200 billion annually. While India earns a surplus in services trade (especially IT/software exports, remittances), the large merchandise trade deficit results in India's overall current account deficit in many years.
Option (a) Surplus export of services — Incorrect: India's services sector (especially IT, software, and business process services) actually enjoys a trade surplus — this is a strength, not a deficiency, of India's overall trade account.
Option (b) Excessive dependence on certain trading partners — Incorrect: While India's trade concentration with certain partners (like China for imports) is a concern, the primary/main deficiency of India's trade balance is the persistent structural deficit caused by high imports of goods.
Option (d) High tariff structure — Incorrect: India's tariff structure is not among the highest globally; moreover, a high tariff structure would reduce imports (improving the trade balance), not cause a deficit — the main issue is the large import demand for essential commodities like oil and gold.

SSC GD 2026 – 27 April 2026 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q37. In which year did India take over the BRICS Chairship from Russia?

(a) 2020
(b) 2021
(c) 2022
(d) 2023

Answer & solution

Answer: (b) 2021

Correct Answer: 2021 — Option (b)
India assumed the BRICS (Brazil, Russia, India, China, South Africa) Chairship in 2021, taking over from Russia (which held the chairship in 2020). Under India's BRICS Chairship 2021, the theme was 'BRICS@15: Intra-BRICS Cooperation for Continuity, Consolidation and Consensus.' The 13th BRICS Summit was held virtually in September 2021, chaired by PM Narendra Modi. India's priorities during its BRICS Chairship included multilateralism reform, counter-terrorism, use of digital and technological tools for sustainable development, and people-to-people cooperation. India has previously held the BRICS Chairship in 2012 and 2016 as well.
Option (a) 2020 — Incorrect: Russia held the BRICS Chairship in 2020 (theme: 'BRICS Partnership for Global Stability, Shared Security and Innovative Growth'); India took over in 2021.
Option (c) 2022 — Incorrect: China held the BRICS Chairship in 2022 (theme: 'Foster High-quality BRICS Partnership, Usher in a New Era for Global Development'); India chaired in 2021.
Option (d) 2023 — Incorrect: South Africa held the BRICS Chairship in 2023 (the Johannesburg Summit where 6 new members were invited to join); India chaired in 2021.

RRB NTPC GL CBT-1 2025-26 – 27 March 2026 Shift 3 · Foreign exchange reserves and exchange rates

Q38. In December 2025, the rupee’s (₹) appreciation against the US dollar was most likely due to which of the following actions by the RBI?

(a) Gold imports
(b) Bond purchases
(c) Interest rate hike
(d) Dollar sales

Answer & solution

Answer: (d) Dollar sales

Topic: Currency Appreciation & RBI Actions
Rupee appreciation means ₹ becomes stronger vs dollar.
Analysis of Options:
Gold imports → Increases dollar demand → Rupee weakens ✗
Bond purchases → Increases money supply → Rupee weakens ✗
Interest rate hike → Attracts foreign investment → Indirect effect
Dollar sales by RBI→ Increases dollar supply in market
→ Reduces dollar demand → Rupee strengthens ✓
Key Fact:When RBI sells dollars from forex reserves,
it directly increases dollar availability, making rupee appreciate.
Answer: Option 4 → Dollar sales

RRB NTPC GL CBT-1 2025-26 – 25 March 2026 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q39. In December 2025, which country officially transferred the BRICS presidency to India during the concluding session of the 4th BRICS Sherpas Meeting?

(a) Brazil
(b) South Africa
(c) Russia
(d) China

Answer & solution

Answer: (a) Brazil

BRICS Presidency Transfer - December 2025
BRICS follows annual rotating presidency among member nations.
Brazilheld the BRICS presidency in 2025.
During the concluding session of the4th BRICS Sherpas Meetingin December 2025, Brazil officially transferred the presidency toIndiafor 2026.
India will host theBRICS Summit 2026as the presiding nation.
Answer: Option 1 → Brazil

RRB NTPC GL CBT-1 2025-26 – 25 March 2026 Shift 3 · Foreign trade policy and EXIM

Q40. Under the Merchandise Exports from India Scheme (MEIS), exporters are rewarded in the form of:

(a) Equity shares in export-oriented units
(b) Non-transferable cash vouchers
(c) Freely transferable Duty Credit Scrips
(d) Export tax rebates that expire on use

Answer & solution

Answer: (c) Freely transferable Duty Credit Scrips

MEIS (Merchandise Exports from India Scheme)
Launched under Foreign Trade Policy 2015-20.
Exporters receiveDuty Credit Scripsas incentive.
Key Features:
• Scrips arefreely transferable
• Can be used for payment of customs duty
• Tradeable in open market
Answer: Option 3 → Freely transferable Duty Credit Scrips

RRB NTPC GL CBT-1 2025-26 – 24 March 2026 Shift 1 · FDI, FPI and FEMA

Q41. FDI in Multi Brand Retail Trade is permitted up to what limit?

(a) 74%
(b) 49%
(c) 51%
(d) 100%

Answer & solution

Answer: (c) 51%

FDI in Multi Brand Retail Trade (MBRT)
Policy: FDI allowed up to51%under approval route.
Key Conditions:
• Minimum investment: $100 million
• 30% sourcing from MSMEs mandatory
• Only in cities with 1 million+ population
Note: Single Brand Retail allows up to 100% FDI.
Answer: Option 3 → 51%

RRB NTPC GL CBT-1 2025-26 – 19 March 2026 Shift 1 · Foreign exchange reserves and exchange rates

Q42. By how much was the rupee devalued in July 1991?

(a) 18 percent
(b) 10 percent
(c) 25 percent
(d) 30 percent

Answer & solution

Answer: (a) 18 percent

In July 1991, India faced a severe balance of payments crisis.
The rupee was devalued intwo stages:
• First devaluation: 9% (July 1, 1991)
• Second devaluation: 11% (July 3, 1991)
Total devaluation =18-19%(approximately 18%)
This was part of India's economic liberalization under PM Narasimha Rao and Finance Minister Manmohan Singh.
Answer: Option 1 → 18 per cent

RRB Technician Grade III 2025-26 – 10 March 2026 Shift 3 · Foreign trade policy and EXIM

Q43. In which year did India completely eliminate Quantitative Restrictions (QRs) on imports as part of trade liberalization?

(a) 2005
(b) 2001
(c) 1998
(d) 1996

Answer & solution

Answer: (b) 2001

India eliminated Quantitative Restrictions (QRs) on imports in 2001.
This was a major step in trade liberalization to promote freer trade.
2001 marks the year when restrictions on import quantities were fully removed.
Hence, India moved towards a more open economy from this year onward.

RRB Technician Grade III 2025-26 – 9 March 2026 Shift 2 · FDI, FPI and FEMA

Q44. Under the 2018 amendments in Foreign Direct Investment (FDI) policy approved by the Cabinet, the maximum Foreign Direct Investment (FDI) permitted under the automatic route in Single Brand Retail Trading (SBRT) is _____

(a) 60%
(b) 40%
(c) 85%
(d) 100%

Answer & solution

Answer: (d) 100%

Correct Answer:100%
Solution:
As per2018 FDI policy amendments,Single Brand Retail Trading (SBRT)allows100% FDI under the automatic route.
Earlier restrictions were relaxed to promoteease of doing business.
It aimed to attractglobal brands and investment in retail sector.

RRB JE CBT-1 2025-26 – 20 February 2026 · Foreign trade policy and EXIM

Q45. Which economic model advocates that developing countries should prioritize import substitution over free trade to promote economic development?

(a) Export-led Growth Model
(b) Neoliberalism
(c) Comparative Advantage Theory
(d) Import Substitution Industrialization

Answer & solution

Answer: (d) Import Substitution Industrialization

Option 4 is correct.
Import Substitution Industrialization (ISI) is an economic strategy
that encourages developing countries to reduce dependency on imports
by producing goods domestically.
This model promotes substituting imports with local production to foster economic development.
Unlike free trade models, ISI protects local industries through tariffs and quotas.
Therefore, ISI advocates prioritising import substitution over free trade for development.
Hence, the answer is Import Substitution Industrialization.

SSC MTS 2025 – 19 February 2026 Shift 1 · Balance of payments and current account

Q46. In the context of Indian economy, the Balance of Payments typically covers _____ year/years for recording the transactions.

(a) one
(b) two
(c) five
(d) six

Answer & solution

Answer: (a) one

The correct answer is option 1.
The Balance of Payments (BoP) is a systematic record of all economic transactions between residents of a country and the rest of the world. It is typically prepared for one year (one accounting period). The BoP consists of the Current Account, Capital Account, and Financial Account, recording all monetary flows in and out of a country over the period of one year.
Option 2 is incorrect: The BoP covers one year, not two years at a time.
Option 3 is incorrect: Five years corresponds to the duration of India's Five Year Plans, not the BoP period.
Option 4 is incorrect: Six years is not the standard period for BoP recording.

SSC MTS 2025 – 19 February 2026 Shift 3 · FDI, FPI and FEMA

Q47. As of May 2025, how many percent of foreign direct investment allowed in coal mining under automatic route?

(a) 49%
(b) 51%
(c) 74%
(d) 100%

Answer & solution

Answer: (d) 100%

Correct Answer: 100% (Option 4)
As of May 2025, 100% FDI is permitted under the automatic route in commercial coal mining in India. This major reform was introduced in 2020 when the Government opened up the coal sector by allowing full foreign investment without requiring prior government approval, aiming to boost coal production and attract private investment.
Why other options are wrong:
Option 1 (49%), Option 2 (51%), and Option 3 (74%) are all incorrect figures. The limit is 100% under the automatic route for commercial coal mining.

SSC MTS 2025 – 18 February 2026 Shift 2 · Foreign exchange reserves and exchange rates

Q48. What is foreign exchange rate?

(a) It is the price of one currency in terms of another.
(b) The interest rate charged by public banks.
(c) The cost of imported goods.
(d) The interest rate charged by the International Monetary Fund.

Answer & solution

Answer: (a) It is the price of one currency in terms of another.

The correct answer is option 1.
The foreign exchange rate (forex rate) is the price at which one country's currency can be exchanged for another. For example, 1 USD = 83 INR is a foreign exchange rate. It is determined by supply and demand in the global foreign exchange market.
Option 2 is incorrect: The interest rate charged by public banks refers to lending or bank rates — domestic monetary policy instruments, not foreign exchange rates.
Option 3 is incorrect: The cost of imported goods refers to import prices, which are influenced by exchange rates but are not the same as the exchange rate itself.
Option 4 is incorrect: The IMF charges interest on loans to member countries; this is unrelated to the concept of foreign exchange rate.

SSC MTS 2025 – 18 February 2026 Shift 3 · Foreign exchange reserves and exchange rates

Q49. Which of the following Institution is the custodian of the foreign exchange reserve in India?

(a) Ministry of Foreign Affairs
(b) Ministry of Finance
(c) Ministry of Corporate Affairs
(d) Reserve Bank of India

Answer & solution

Answer: (d) Reserve Bank of India

The correct answer is option 4.
The Reserve Bank of India (RBI) is the custodian and manager of India's foreign exchange reserves. As India's central bank, the RBI manages the reserves under the Foreign Exchange Management Act (FEMA) with the objective of ensuring external stability of the rupee and maintaining adequate liquidity for import payments.
Option 1 is incorrect: The Ministry of Foreign Affairs (Ministry of External Affairs) deals with India's diplomatic relations, not financial reserves management.
Option 2 is incorrect: The Ministry of Finance deals with economic policy, budget, and fiscal management but does not directly hold or manage foreign exchange reserves.
Option 3 is incorrect: The Ministry of Corporate Affairs regulates companies and corporate governance; it has no role in managing foreign exchange reserves.

SSC MTS 2025 – 17 February 2026 Shift 1 · Balance of payments and current account

Q50. In the context of Balance on current account, which of the following is included in Invisibles?

(a) Services
(b) Foreign direct investment
(c) Foreign institutional investment
(d) External Borrowings

Answer & solution

Answer: (a) Services

In the Balance of Payments (BOP), the current account includes trade in goods ( visibles ) and Invisibles. Invisibles include services (tourism, banking, insurance, software), transfers, and income. Foreign direct investment, foreign institutional investment, and external borrowings are part of the Capital Account, not Invisibles.

SSC MTS 2025 – 16 February 2026 Shift 1 · Foreign exchange reserves and exchange rates

Q51. Which of the following statement is INCORRECT regarding Foreign exchange rate?

(a) It is the price of one currency in terms of another.
(b) It enables comparison of international costs and prices.
(c) People demand foreign exchange because they want to purchase goods and services from other countries.
(d) A rise in the price of foreign exchange decreases the cost of purchasing a foreign good.

Answer & solution

Answer: (d) A rise in the price of foreign exchange decreases the cost of purchasing a foreign good.

Statement (d) is INCORRECT: A rise in the price of foreign exchange actually INCREASES the cost of purchasing foreign goods, not decreases it. If the exchange rate rises (domestic currency depreciates), you need more domestic currency to buy the same amount of foreign currency, making imports more expensive.
Why other options are correct (not the answer):
- 'It is the price of one currency in terms of another' — This is the correct definition of an exchange rate.
- 'It enables comparison of international costs and prices' — True; exchange rates allow comparison of prices across currencies.
- 'People demand foreign exchange to purchase goods/services from other countries' — True; this is one of the primary reasons for foreign exchange demand.

SSC MTS 2025 – 16 February 2026 Shift 2 · Balance of payments and current account

Q52. In the context of Balance of Payment, which of the following statement is correct regarding Balance of Trade (BOT)?

(a) It is the difference between the value of exports and value of imports of a country in a given period of time.
(b) Export of goods is entered as a debit item in BOT.
(c) Imports of goods is entered as a credit item in BOT.
(d) BOT is said to be in surplus when exports of goods are equal to the imports of goods.

Answer & solution

Answer: (a) It is the difference between the value of exports and value of imports of a country in a given period of time.

Balance of Trade (BOT) is defined as the difference between the monetary value of a country's exports and imports of goods (visible trade) in a given time period. If exports exceed imports, it is a trade surplus; if imports exceed exports, it is a trade deficit.
Why other options are incorrect:
- Exports as debit items: Exports are CREDIT items in BOT (they bring foreign exchange in); imports are debit items.
- Imports as credit items: Imports are DEBIT items (they lead to outflow of foreign exchange); exports are credit items.
- BOT surplus when exports equal imports: Equal exports and imports result in a balanced trade, not a surplus. A surplus occurs only when exports exceed imports.

SSC MTS 2025 – 13 February 2026 Shift 3 · Foreign trade policy and EXIM

Q53. The Special Economic Zones Policy in India was launched in ____.

(a) 2000
(b) 2013
(c) 2016
(d) 2019

Answer & solution

Answer: (a) 2000

India's Special Economic Zones (SEZ) Policy was announced in April 2000 as part of the Export-Import (EXIM) Policy. The SEZ policy was introduced to provide export-oriented industries with a hassle-free environment, tax incentives, and world-class infrastructure. The SEZ Act, 2005 was later passed to provide a comprehensive legislative framework.
Why other options are incorrect:
- 2013: The SEZ policy had already been in operation for 13 years by 2013.
- 2016: Incorrect; the policy was launched in 2000.
- 2019: This is well after the original SEZ policy was announced.

SSC MTS 2025 – 12 February 2026 Shift 3 · Foreign trade policy and EXIM

Q54. In which year did India established its first Export Processing Zone (EPZ)?

(a) 1965
(b) 1969
(c) 1978
(d) 1984

Answer & solution

Answer: (a) 1965

Correct Answer: Option 1 – 1965
India established its first Export Processing Zone (EPZ) at Kandla, Gujarat, in 1965. This was one of the earliest EPZs in Asia, set up to boost export-led growth by providing a special economic environment for export-oriented industries with simplified regulations, tax benefits, and modern infrastructure.
Why other options are wrong:
Option 2 (1969): No EPZ was set up in 1969; Kandla EPZ was established in 1965.
Option 3 (1978): This does not correspond to the first EPZ in India.
Option 4 (1984): Later EPZs were set up in subsequent years, but the first was in 1965.

SSC MTS 2025 – 12 February 2026 Shift 3 · ADB, AIIB, NDB and other banks

Q55. The Asian Infrastructure Investment Bank commenced its operations in _____.

(a) 1991
(b) 1997
(c) 2003
(d) 2016

Answer & solution

Answer: (d) 2016

Correct Answer: Option 4 – 2016
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank proposed by China. It was officially established in December 2015 and commenced its operations in January 2016. AIIB focuses on financing infrastructure projects across Asia and beyond. India is one of the founding members and second-largest shareholder of AIIB.
Why other options are wrong:
Option 1 (1991): 1991 is not associated with AIIB; the concept was proposed in 2013.
Option 2 (1997): 1997 is associated with the Asian financial crisis, not AIIB.
Option 3 (2003): AIIB was not established in 2003; its articles of agreement were signed in 2015.

SSC MTS 2025 – 11 February 2026 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q56. After which of the following country joining, BRIC transformed into BRICS?

(a) Spain
(b) Somalia
(c) South Africa
(d) Serbia

Answer & solution

Answer: (c) South Africa

The correct answer is South Africa (Option 3). BRIC (Brazil, Russia, India, China) was formally established in 2009. It became BRICS when South Africa joined the grouping in 2010 at the Sanya Summit in China in April 2011. The 'S' in BRICS stands for South Africa. Options 1 (Spain), 2 (Somalia), and 4 (Serbia) are not members of BRICS.

SSC MTS 2025 – 10 February 2026 Shift 3 · ADB, AIIB, NDB and other banks

Q57. The headquarter of Asian Development Bank is located in _____.

(a) Philippines
(b) USA
(c) India
(d) China

Answer & solution

Answer: (a) Philippines

The correct answer is Philippines (Option 1). The Asian Development Bank (ADB) is headquartered in Mandaluyong City, Metro Manila, Philippines. It was established in 1966. Option 2 (USA) is incorrect as the World Bank and IMF are headquartered in Washington D.C. Option 3 (India) is incorrect. Option 4 (China) is incorrect; however, China is a major shareholder.

SSC MTS 2025 – 5 February 2026 Shift 1 · Balance of payments and current account

Q58. In the context of Balance of Payment, which of the following is NOT included in Capital account?

(a) Foreign institutional investment
(b) Foreign direct investment
(c) External borrowings
(d) Remittances

Answer & solution

Answer: (d) Remittances

Correct Answer: Remittances
Remittances (money sent by Indians working abroad to their families in India) are recorded under the CURRENT ACCOUNT (under private transfers), NOT the Capital Account of the Balance of Payments.
Why other options are wrong:
Foreign institutional investment (FII) - Included in Capital/Financial Account.
Foreign direct investment (FDI) - Included in Capital/Financial Account.
External borrowings - Included in Capital Account (as loans from abroad).

SSC MTS 2025 – 5 February 2026 Shift 2 · Balance of payments and current account

Q59. In the context of Balance of Payment, current account does record which of the following?

(a) Foreign institutional investment
(b) Foreign direct investment
(c) External borrowings
(d) Grants

Answer & solution

Answer: (d) Grants

Correct Answer: Grants
In the Balance of Payments, the Current Account records: trade in goods (visible trade), trade in services (invisible trade), investment income (interest, dividends), and current transfers including Grants (aid/gifts between countries). Grants are one-way transfers with no obligation of repayment.
Why other options are wrong:
Foreign institutional investment (FII) - Recorded in the Capital/Financial Account.
Foreign direct investment (FDI) - Recorded in the Capital/Financial Account.
External borrowings - Recorded in the Capital Account (as loans).

Delhi Police Head Constable (Ministerial) 2025-26 – 9 January 2026 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q60. Which unique feature of BRICS distinguishes it from traditional Western economic blocs like G7?

(a) It focuses on military alliances only
(b) It consists solely of low-income countries
(c) It includes emerging economies from different continents aiming for multipolarity
(d) It operates under NATO funding

Answer & solution

Answer: (c) It includes emerging economies from different continents aiming for multipolarity

Correct Answer: Option 3 – It includes emerging economies from different continents aiming for multipolarity
BRICS (Brazil, Russia, India, China, South Africa — and recently expanded) is distinguished from Western-led groups like G7 by:
• Multipolarity focus: BRICS represents a push for a multipolar world order, challenging the dominance of Western countries in global governance.
• Geographic diversity: Members span South America, Europe, Asia, and Africa — representing diverse geopolitical regions.
• Emerging economies: Unlike G7 (developed Western nations), BRICS brings together major emerging market economies.
• No military alliance: BRICS is an economic and political cooperation group, not a military alliance.
• Global South representation: BRICS gives a platform to developing nations to influence global economic rules.
Why other options are wrong:
Option 1 (Military alliances): BRICS is NOT a military alliance. It has no collective defence framework like NATO.
Option 2 (Solely low-income): BRICS includes China and Russia, which are not low-income countries. It includes middle-income and upper-middle-income economies.
Option 4 (NATO funding): BRICS has no connection with NATO. NATO is a separate Western military alliance.

Delhi Police Head Constable (Ministerial) 2025-26 – 8 January 2026 Shift 2 · FDI, FPI and FEMA

Q61. The term 'round tripping' in case of Foreign Direct Investments is related to which among the following?

(a) Use of FDI Funds out of Country
(b) Coming Back of Domestic Money as FDI
(c) Sending Back of Domestic Money as FDI
(d) Repatriation of the FDI made abroad

Answer & solution

Answer: (b) Coming Back of Domestic Money as FDI

Correct Answer: Option 2 – Coming Back of Domestic Money as FDI
'Round tripping' in the context of FDI refers to a practice where domestic money (often black money or capital) is first sent abroad (usually to tax havens like Mauritius, Cayman Islands) and then brought back into the country disguised as Foreign Direct Investment (FDI). This allows investors to:
• Avoid domestic taxes (tax evasion)
• Benefit from FDI tax exemptions and incentives
• Launder money through the appearance of legitimate foreign investment
India receives significant FDI inflows from Mauritius and Singapore, some of which has historically been suspected of being round-tripped domestic capital.
Why other options are wrong:
Option 1 (Use of FDI funds out of Country): This refers to how FDI is utilised , not round tripping.
Option 3 (Sending Back of Domestic Money as FDI): This is the first step (outflow), but round tripping specifically refers to the return of that money AS FDI — Option 2 more accurately captures the complete concept of what 'round tripping' means.
Option 4 (Repatriation of FDI made abroad): Repatriation refers to legitimate return of profits/capital by genuine foreign investors, not round tripping.

Delhi Police Head Constable (Ministerial) 2025-26 – 7 January 2026 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q62. Which country recently assumed the chairmanship of BRICS in 2025?

(a) India
(b) Brazil
(c) Russia
(d) South Africa

Answer & solution

Answer: (b) Brazil

Correct Answer: Option 2 – Brazil
Brazil assumed the Chairmanship of BRICS in 2025. BRICS is an intergovernmental organisation comprising Brazil, Russia, India, China, South Africa, and recently added members (Egypt, Ethiopia, Iran, UAE). The chairmanship rotates among members annually. Brazil's theme for 2025 was "Strengthening South-South Cooperation for More Inclusive and Sustainable Governance."
Why other options are wrong:
Option 1 (India): India held the G20 Presidency in 2023. India will have the BRICS chair in a different year.
Option 3 (Russia): Russia held the BRICS Chairmanship in 2024, not 2025.
Option 4 (South Africa): South Africa held the BRICS Chairmanship in 2023.

Delhi Police Constable (Exe) 2025-26 – 6 January 2026 Shift 2 · ADB, AIIB, NDB and other banks

Q63. The headquarters of the New Development Bank (NDB), established by BRICS countries to support infrastructure and sustainable development projects, is located in which city?

(a) Shanghai
(b) Brasilia
(c) New Delhi
(d) Johannesburg

Answer & solution

Answer: (a) Shanghai

The correct answer is (a) Shanghai.
The New Development Bank (NDB), also known as the BRICS Development Bank, has its headquarters in Shanghai, China. It was established in 2015 by the BRICS nations (Brazil, Russia, India, China, South Africa) to fund infrastructure and sustainable development projects in BRICS and other emerging economies. The first President was K.V. Kamath from India.
(b) Brasilia: Capital of Brazil; a BRICS member, but not the location of NDB headquarters.
(c) New Delhi: Capital of India; a BRICS member, but not the NDB headquarters city.
(d) Johannesburg: South Africa's financial center; not the NDB headquarters city.

Delhi Police Constable (Exe) 2025-26 – 5 January 2026 Shift 1 · FDI, FPI and FEMA

Q64. What does the acronym 'FDI' stand for in the context of economics?

(a) Foreign Direct Investment
(b) Fiscal Deficit Index
(c) Forward Dollar Investment
(d) Future Development Index

Answer & solution

Answer: (a) Foreign Direct Investment

The correct answer is (a) Foreign Direct Investment.
FDI stands for Foreign Direct Investment — investment made by a company or individual in one country into business interests in another country, typically involving establishing business operations or acquiring ownership or controlling interest in a foreign company.
(b) Fiscal Deficit Index: Not a standard economic term or acronym.
(c) Forward Dollar Investment: Not a standard economic term; FDI has never stood for this.
(d) Future Development Index: Not a standard economic acronym.

Delhi Police Constable (Exe) 2025-26 – 5 January 2026 Shift 1 · Foreign trade policy and EXIM

Q65. In the context of international trade, what is the definition of a 'Quota'?

(a) A tax on imports
(b) A tax on exports
(c) A physical limit on the quantity of a good that can be imported
(d) A quality standard for goods

Answer & solution

Answer: (c) A physical limit on the quantity of a good that can be imported

The correct answer is (c) A physical limit on the quantity of a good that can be imported.
A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported during a particular time period. It is a non-tariff barrier used to protect domestic industries from foreign competition.
(a) A tax on imports: This is the definition of a tariff (customs duty), not a quota.
(b) A tax on exports: This is an export duty; not a quota.
(d) A quality standard for goods: This describes a technical barrier to trade (sanitary/phytosanitary standard); not a quota.

Delhi Police Constable (Exe) 2025-26 – 5 January 2026 Shift 1 · FDI, FPI and FEMA

Q66. What does the term 'Automatic Route' imply in the context of Foreign Direct Investment (FDI)?

(a) FDI that requires Parliament approval
(b) FDI that requires RBI approval
(c) FDI that does not require prior government/RBI approval
(d) FDI that is banned

Answer & solution

Answer: (c) FDI that does not require prior government/RBI approval

The correct answer is (c) FDI that does not require prior government/RBI approval.
Under India's FDI policy, the Automatic Route means foreign investment does not require prior approval from the Government of India or the RBI. The investor only needs to notify the RBI within 30 days of inward remittance. It covers most sectors up to specified limits.
(a) FDI that requires Parliament approval: No FDI route requires Parliament approval.
(b) FDI that requires RBI approval: This more accurately describes the Government/Approval Route (not Automatic Route) where prior approval is needed.
(d) FDI that is banned: FDI in sectors like atomic energy, lottery, and gambling is prohibited; this is not the definition of Automatic Route.

Delhi Police Constable (Exe) 2025-26 – 5 January 2026 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q67. Which of the following countries is a founding member of BRICS, the association of major emerging economies promoting economic cooperation and development?

(a) Indonesia
(b) South Africa
(c) Saudi Arabia
(d) Mexico

Answer & solution

Answer: (b) South Africa

The correct answer is (b) South Africa.
Among the options given, South Africa is the only BRICS member country. While Brazil, Russia, India, and China formed the original BRIC grouping in 2009, South Africa joined in 2010, forming BRICS. South Africa has been a core member of BRICS since its inclusion and participated in its annual summits.
(a) Indonesia: Was invited to join BRICS as a new member in 2024-2025; not among the original members.
(c) Saudi Arabia: Was invited to join BRICS as a new member in 2023-2024; not among the original or early members.
(d) Mexico: Is not a BRICS member; it is a member of G20, OECD, and USMCA.

Delhi Police Constable (Exe) 2025-26 – 2 January 2026 Shift 3 · Balance of payments and current account

Q68. What economic situation is described by the term 'Trade Surplus'?

(a) When Imports are equal to Exports
(b) When Imports are greater than Exports
(c) When Exports are greater than Imports
(d) When there is no trade

Answer & solution

Answer: (c) When Exports are greater than Imports

A Trade Surplus occurs when a country's total value of exports exceeds its total value of imports. This results in a positive trade balance, meaning the country earns more from selling goods/services abroad than it spends on buying from abroad.
(a) Incorrect: When imports equal exports, it results in a Trade Balance (equilibrium or balanced trade), not a surplus.
(b) Incorrect: When imports are greater than exports, it results in a Trade Deficit (negative trade balance), the opposite of a surplus.
(c) Incorrect: 'When there is no trade' describes a condition of autarky or economic isolation, not a trade surplus.

Delhi Police Constable (Exe) 2025-26 – 30 December 2025 Shift 1 · Balance of payments and current account

Q69. What is a 'Trade Deficit'?

(a) When imports are equal to Exports
(b) When imports are greater than Exports
(c) When Exports are greater than Imports
(d) When there is no trade

Answer & solution

Answer: (b) When imports are greater than Exports

A trade deficit (or negative trade balance) occurs when a country's total value of imports exceeds its total value of exports over a given period. It is the opposite of a trade surplus. India has historically maintained a trade deficit.
(a) Incorrect: When imports equal exports, it is called a balanced trade or zero trade balance, not a trade deficit.
(c) Incorrect: When exports are greater than imports, it is called a trade surplus (positive trade balance), not a trade deficit.
(d) Incorrect: When there is no trade, neither a deficit nor a surplus exists; a trade deficit specifically requires imports exceeding exports.

Delhi Police Constable (Exe) 2025-26 – 30 December 2025 Shift 1 · WTO

Q70. What was the name of the organization that set global trade rules before the World Trade Organization (WTO)?

(a) UNCTAD
(b) GATT
(c) World Bank
(d) IMF

Answer & solution

Answer: (b) GATT

GATT (General Agreement on Tariffs and Trade), established in 1947, governed global trade rules before being replaced by the WTO on 1 January 1995. GATT focused on reducing tariffs and resolving trade disputes through multilateral negotiation rounds.
(a) Incorrect: UNCTAD (1964) promotes trade for developing countries but did not set global trade rules in the way GATT did.
(c) Incorrect: The World Bank provides development loans; it does not set global trade rules.
(d) Incorrect: The IMF oversees the international monetary system; it does not govern global trade rules.

Delhi Police Constable (Exe) 2025-26 – 30 December 2025 Shift 1 · Foreign trade policy and EXIM

Q71. What was India's pre-1991 policy of trying to produce all goods domestically instead of importing them called?

(a) Export Promotion
(b) Import Substitution
(c) Globalization
(d) Privatization

Answer & solution

Answer: (b) Import Substitution

Import Substitution Industrialization (ISI) was India's pre-1991 economic strategy of building domestic industries to produce goods previously imported, reducing import dependence and achieving self-reliance.
(a) Incorrect: Export Promotion is the opposite policy; India shifted toward this more after 1991.
(c) Incorrect: Globalization refers to integration with the global economy; India avoided deep globalization before 1991.
(d) Incorrect: Privatization refers to transferring government enterprises to private ownership; it is not the term for India's pre-1991 domestic production strategy.

Delhi Police Constable (Exe) 2025-26 – 30 December 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q72. Where was the first BRIC summit held in 2009?

(a) Moscow
(b) Beijing
(c) Yekaterinburg
(d) New Delhi

Answer & solution

Answer: (c) Yekaterinburg

The first BRIC summit was held in Yekaterinburg, Russia on 16 June 2009. BRIC (later BRICS after South Africa joined in 2010) consisted of Brazil, Russia, India, and China. Russia hosted this inaugural summit.
(a) Incorrect: Moscow, though Russia's capital, was not the venue; the summit was held in Yekaterinburg.
(b) Incorrect: Beijing, China was not the location; the first BRIC summit was hosted by Russia in Yekaterinburg.
(d) Incorrect: New Delhi did not host the first BRIC summit; India hosted a BRICS summit later in 2012.

Delhi Police Constable (Exe) 2025-26 – 29 December 2025 Shift 1 · ADB, AIIB, NDB and other banks

Q73. What does the BRICS New Development Bank primarily finance?

(a) Defense projects
(b) Sustainable infrastructure projects
(c) Space research programs
(d) Cultural festivals

Answer & solution

Answer: (b) Sustainable infrastructure projects

The BRICS New Development Bank (NDB), headquartered in Shanghai, primarily finances sustainable infrastructure projects and sustainable development projects in BRICS nations and other emerging economies. This includes renewable energy, transport, water supply, and urban development.
(a) Incorrect: Defense projects are not part of the NDB's mandate.
(c) Incorrect: Space research programs are not NDB's primary focus area.
(d) Incorrect: Cultural festivals are not financed by the NDB.

Delhi Police Constable (Exe) 2025-26 – 29 December 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q74. What is the Contingent Reserve Arrangement (CRA) under BRICS designed for?

(a) Military funding
(b) Offering liquidity support during payment crises
(c) Funding cultural programs
(d) Supporting space missions

Answer & solution

Answer: (b) Offering liquidity support during payment crises

The Contingent Reserve Arrangement (CRA) under BRICS is a framework for providing mutual financial assistance to member countries facing balance of payments problems or short-term liquidity crises (payment crises). It acts as a safety net similar to the IMF, with a reserve pool of $100 billion.
(a) Incorrect: CRA is not for military funding.
(c) Incorrect: CRA does not fund cultural programs.
(d) Incorrect: Space missions are not the purpose of the CRA.

Delhi Police Constable (Exe) 2025-26 – 29 December 2025 Shift 3 · Foreign trade policy and EXIM

Q75. What is meant by a 'Special Economic Zone' (SEZ) in India?

(a) A historical monument
(b) An area with tax benefits to promote exports
(c) A government-owned factory
(d) A national park

Answer & solution

Answer: (b) An area with tax benefits to promote exports

A Special Economic Zone (SEZ) in India is a geographically delimited area where special business and trade regulations apply, distinct from the rest of the country, specifically designed to promote exports and attract investment. SEZs offer income tax holidays, duty-free imports, simplified customs, and better infrastructure. India's SEZ Act was passed in 2005. Examples include Noida SEZ, SEEPZ Mumbai, and Mundra SEZ.
(a) Incorrect: A historical monument is a heritage site; an SEZ is an economic policy instrument.
(c) Incorrect: An SEZ is not a government-owned factory; it is a designated zone hosting multiple private and public enterprises.
(d) Incorrect: A national park is a protected conservation area for wildlife; an SEZ is an economic promotion zone.

Delhi Police Constable (Exe) 2025-26 – 23 December 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q76. Who first coined the acronym BRIC in 2001?

(a) World Bank
(b) IMF
(c) Goldman Sachs
(d) United Nations

Answer & solution

Answer: (c) Goldman Sachs

The correct answer is Goldman Sachs (Option 3).
The term BRIC (Brazil, Russia, India, China) was first coined by economist Jim O'Neill of Goldman Sachs in a 2001 research paper titled 'Building Better Global Economic BRICs,' highlighting these four emerging economies as future global powerhouses.
Option 1 - World Bank: Did not coin the BRIC acronym; it is a multilateral development institution.
Option 2 - IMF: Did not originate the BRIC term; it is the International Monetary Fund focused on global financial stability.
Option 4 - United Nations: Did not create the BRIC concept; it is an intergovernmental organization.

Delhi Police Constable (Exe) 2025-26 – 23 December 2025 Shift 3 · FDI, FPI and FEMA

Q77. What is one impact of foreign investment on local economies?

(a) Fewer jobs
(b) Reduces access to resources
(c) Helps expand production and job creation
(d) Causes economic decline

Answer & solution

Answer: (c) Helps expand production and job creation

The correct answer is Helps expand production and job creation (Option 3).
Foreign investment (FDI) typically brings capital, technology, and managerial expertise to local economies. This helps set up or expand industries, increases production capacity, and creates employment opportunities for the local workforce.
Option 1 - Fewer jobs: Foreign investment generally creates more jobs by establishing new businesses and industries, not fewer.
Option 2 - Reduces access to resources: Foreign investment can increase access to resources by bringing in capital and infrastructure development.
Option 4 - Causes economic decline: Foreign investment generally stimulates economic growth, not decline, by boosting output, exports, and employment.

Delhi Police Constable (Exe) 2025-26 – 23 December 2025 Shift 3 · Foreign trade policy and EXIM

Q78. What is the primary goal of the import substitution strategy adopted by India in the first seven 'five-year plans'?

(a) To encourage more imports and less domestic production
(b) To replace imports with domestic production
(c) To increase the import of luxury goods
(d) To remove tariffs and quotas on imported goods

Answer & solution

Answer: (b) To replace imports with domestic production

The correct answer is To replace imports with domestic production (Option 2).
Import substitution industrialisation (ISI) was India's primary industrial strategy during the first seven Five-Year Plans. The goal was to reduce dependence on foreign goods by producing them domestically, thus saving foreign exchange and building self-reliance. High tariffs and import controls protected domestic industries.
Option 1 - To encourage more imports and less domestic production: This is the opposite of import substitution, which specifically aims to reduce imports.
Option 3 - To increase the import of luxury goods: Import substitution sought to reduce imports, not increase them, especially not luxury goods.
Option 4 - To remove tariffs and quotas: Removing tariffs and quotas is a feature of trade liberalisation , not import substitution, which actually relied on protective tariffs.

Delhi Police Constable (Exe) 2025-26 – 22 December 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q79. In which city did the first meeting of BRIC Foreign Ministers take place in 2006?

(a) Moscow
(b) New Delhi
(c) New York
(d) Beijing

Answer & solution

Answer: (c) New York

The first BRIC Foreign Ministers' meeting took place in New York in September 2006, on the sidelines of the United Nations General Assembly. This meeting laid the groundwork for the subsequent BRIC Summits, with the first full BRIC Summit held in Yekaterinburg, Russia in 2009. Option 3 is correct.
Option 1 is wrong: Moscow is Russia's capital and has hosted various diplomatic meetings, but the first BRIC Foreign Ministers' meeting in 2006 was held in New York, not Moscow.
Option 2 is wrong: New Delhi, India's capital, has hosted various BRICS meetings and summits, but the first BRIC Foreign Ministers' meeting in 2006 was held in New York.
Option 4 is wrong: Beijing, China's capital, has hosted BRICS events, but the inaugural BRIC Foreign Ministers' meeting in 2006 was convened in New York on the sidelines of the UN General Assembly.

Delhi Police Constable (Exe) 2025-26 – 22 December 2025 Shift 3 · Foreign trade policy and EXIM

Q80. What does the term 'Tariff' signify in the context of trade?

(a) A tax on goods produced in the country
(b) A subsidy on exports
(c) A tax on goods imported from other countries
(d) A limit on the quantity of imports

Answer & solution

Answer: (c) A tax on goods imported from other countries

The correct answer is A tax on goods imported from other countries (Option 3).
A tariff is a tax imposed by a government on imported goods. It makes imported goods more expensive, protecting domestic industries and generating government revenue.
Option 1 - A tax on goods produced in the country: This describes an excise duty or production tax, not a tariff.
Option 2 - A subsidy on exports: A subsidy is a financial incentive given to exporters to make their goods cheaper abroad; the opposite of a tariff.
Option 4 - A limit on the quantity of imports: This describes an import quota, which restricts the volume of imports rather than imposing a tax.

Delhi Police Constable (Exe) 2025-26 – 20 December 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q81. In which year did South Africa first attend a BRICS Summit?

(a) 2009
(b) 2010
(c) 2011
(d) 2012

Answer & solution

South Africa officially joined BRICS and first attended the BRICS Summit in 2011, held in Sanya, China — transforming the grouping from BRIC to BRICS. Option 3 is correct.
Option 1 is wrong: The first BRIC Summit was held in 2009 in Yekaterinburg, Russia. South Africa was not a member at that time.
Option 2 is wrong: The 2010 BRIC Summit was held in Brasilia, Brazil. South Africa had not yet formally joined.
Option 4 is wrong: By 2012, South Africa was already a BRICS member (having joined in 2011), so 2012 was not its first attendance.

Delhi Police Constable (Exe) 2025-26 – 20 December 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q82. Which Southeast Asian country became a full BRICS member in January 2025?

(a) Vietnam
(b) Malaysia
(c) Indonesia
(d) Thailand

Answer & solution

Answer: (c) Indonesia

Indonesia officially became a full member of BRICS in January 2025, joining the grouping that already included Brazil, Russia, India, China, South Africa, and the new members admitted in 2024 (Egypt, Ethiopia, Iran, UAE). Option 3 is correct.
Option 1 is wrong: Vietnam has expressed interest in BRICS but did not become a full member in January 2025.
Option 2 is wrong: Malaysia applied for BRICS membership but did not become a full member in January 2025.
Option 4 is wrong: Thailand has engaged with BRICS but did not attain full member status in January 2025.

Delhi Police Constable (Exe) 2025-26 – 20 December 2025 Shift 2 · FDI, FPI and FEMA

Q83. Which act replaced FERA (Foreign Exchange Regulation Act) in 1999 to facilitate external trade and payments?

(a) Monopolies and Restrictive Trade Practices Act
(b) Securities and Exchange Board of India Act
(c) Foreign Exchange Management Act
(d) Banking Regulation Act

Answer & solution

Answer: (c) Foreign Exchange Management Act

The Foreign Exchange Management Act (FEMA), 1999, replaced the Foreign Exchange Regulation Act (FERA), 1973. FEMA shifted the approach from penal/criminal enforcement (under FERA) to a civil and management-based framework to facilitate external trade, payments, and development of the foreign exchange market. Option 3 is correct.
Option 1 is wrong: The Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, governed anti-competitive practices and monopolies; it was not related to foreign exchange regulation.
Option 2 is wrong: The SEBI Act, 1992, established the Securities and Exchange Board of India to regulate the securities market; it was not a replacement for FERA.
Option 4 is wrong: The Banking Regulation Act, 1949, governs the banking sector; it was not enacted to replace FERA.

Delhi Police Constable (Exe) 2025-26 – 20 December 2025 Shift 2 · Foreign exchange reserves and exchange rates

Q84. Which of the following was not recommended by the Tarapore Committee (1997)?

(a) Strengthening the financial sector
(b) Reduction in gross fiscal deficit
(c) Inflation control
(d) Basel III adoption

Answer & solution

Answer: (d) Basel III adoption

The Tarapore Committee on Capital Account Convertibility (1997) recommended preconditions for full convertibility including: reducing gross fiscal deficit, controlling inflation (below 3-5%), strengthening the financial sector, and building forex reserves. Basel III was NOT recommended because it did not exist in 1997 — the Basel III framework was developed by the Basel Committee on Banking Supervision only in 2010-11. Option 4 is correct.
Option 1 is wrong: Strengthening the financial sector WAS recommended by the Tarapore Committee as a precondition for Capital Account Convertibility.
Option 2 is wrong: Reduction in gross fiscal deficit WAS recommended — the Committee specified that the gross fiscal deficit should be reduced to 3.5% of GDP.
Option 3 is wrong: Inflation control WAS recommended — the Committee set a target of maintaining CPI inflation in the 3-5% range as a precondition.

Delhi Police Constable (Exe) 2025-26 – 20 December 2025 Shift 2 · Foreign trade policy and EXIM

Q85. Which of the following was not part of India's trade policy in 1947-1990?

(a) Encouragement of foreign multinational corporations
(b) Quantitative restrictions on imports
(c) Export promotion councils
(d) Tariffs and duties to protect domestic industries

Answer & solution

Answer: (a) Encouragement of foreign multinational corporations

During 1947-1990, India followed an inward-looking, protectionist trade policy (import substitution industrialization). Encouragement of foreign multinational corporations was NOT part of this policy — FDI was severely restricted and MNCs were discouraged. This changed only after the 1991 LPG reforms. Option 1 is correct.
Option 2 is wrong: Quantitative restrictions (QRs) on imports WERE a central feature of India's trade policy 1947-1990, administered through the Import Control Order and licensing system.
Option 3 is wrong: Export promotion councils WERE established (e.g., the Clothing Export Promotion Council, FIEO) to help exporters — export promotion was part of India's trade policy even before 1990.
Option 4 is wrong: High tariffs and duties to protect domestic industries WERE central to India's pre-1991 trade policy, creating an effective system of protection for infant industries.

Delhi Police Constable (Exe) 2025-26 – 20 December 2025 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q86. Where was the first BRIC Summit held in 2009?

(a) St. Petersburg, USA
(b) Beijing, China
(c) New Delhi, India
(d) Yekaterinburg, Russia

Answer & solution

Answer: (d) Yekaterinburg, Russia

The first BRIC Summit was held in Yekaterinburg, Russia in June 2009, bringing together the leaders of Brazil, Russia, India, and China (before South Africa joined in 2010 to form BRICS). Option 4 is correct.
Option 1 is wrong: St. Petersburg is a city in Russia, not the USA. The first BRIC Summit was held in Yekaterinburg, Russia — not St. Petersburg.
Option 2 is wrong: Beijing, China has hosted various BRICS summits, but the first BRIC Summit in 2009 was held in Yekaterinburg, Russia.
Option 3 is wrong: New Delhi, India has hosted BRICS Summits, but the inaugural BRIC Summit in 2009 was held in Yekaterinburg, Russia — not India.

Delhi Police Constable (Exe) 2025-26 – 20 December 2025 Shift 3 · Balance of payments and current account

Q87. Which is not included in India's capital account?

(a) Portfolio investment
(b) Remittances from abroad
(c) Foreign Direct Investment inflows
(d) External commercial borrowings

Answer & solution

Answer: (b) Remittances from abroad

Remittances from abroad (money sent by Indian workers overseas to their families in India) are classified as a transfer payment and recorded in the Current Account of the Balance of Payments — NOT the capital account. The capital account includes FDI, FPI/Portfolio investment, external commercial borrowings, and banking capital flows. Option 2 is correct.
Option 1 is wrong: Portfolio investment (Foreign Portfolio Investment/FII/FPI flows into equity and debt markets) IS included in India's capital account as a short-term financial flow.
Option 3 is wrong: Foreign Direct Investment (FDI) inflows ARE included in India's capital account as long-term investment flows into companies, infrastructure, and assets.
Option 4 is wrong: External Commercial Borrowings (ECBs) — loans raised by Indian companies from foreign sources — ARE included in India's capital account as debt-creating financial flows.

Delhi Police Constable (Exe) 2025-26 – 19 December 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q88. Which of the following countries is NOT listed among BRICS 'partner countries' as of 2025?

(a) Cuba
(b) Belarus
(c) Argentina
(d) Uganda

Answer & solution

Answer: (c) Argentina

Argentina is NOT listed among the BRICS partner countries as of 2025. Argentina was invited to become a full BRICS member in 2023, but President Javier Milei's government officially declined the invitation in January 2024 and Argentina withdrew from joining BRICS. The BRICS partner countries (announced at the Kazan Summit, October 2024) include: Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam.
Option 1 is incorrect: Cuba IS a BRICS partner country, having been invited and accepted at the 2024 Kazan Summit.
Option 2 is incorrect: Belarus IS a BRICS partner country, having been invited and accepted at the 2024 Kazan Summit.
Option 4 is incorrect: Uganda IS a BRICS partner country from Africa, having been invited and accepted at the 2024 Kazan Summit.

Delhi Police Constable (Exe) 2025-26 – 19 December 2025 Shift 1 · Foreign trade policy and EXIM

Q89. Which trade policy strategy was adopted by India in the 1950s-1960s?

(a) Foreign direct investment liberalization
(b) Free trade with developed nations
(c) Export-led growth
(d) Import substitution industrialization

Answer & solution

Answer: (d) Import substitution industrialization

India adopted Import Substitution Industrialization (ISI) as its trade policy strategy in the 1950s-1960s. This strategy involved: protecting domestic industries through high tariffs and import licensing; promoting self-sufficiency in manufacturing; restricting foreign investment; and developing heavy industries through public sector enterprises. While ISI helped build India's industrial base, it also led to inefficiencies and the 'License Raj.'
Option 1 is incorrect: FDI liberalization was part of India's post-1991 reform era, not the 1950s-60s policy.
Option 2 is incorrect: India maintained high import barriers and did not pursue free trade with developed nations in the 1950s-60s.
Option 3 is incorrect: Export-led growth became India's strategy after the 1991 economic reforms, not in the 1950s-60s.

Delhi Police Constable (Exe) 2025-26 – 19 December 2025 Shift 2 · Foreign trade policy and EXIM

Q90. What is the primary objective of Special Economic Zones (SEZs)?

(a) To promote agricultural development
(b) To attract foreign investment and boost exports
(c) To regulate the stock market
(d) To manage public sector enterprises

Answer & solution

Answer: (b) To attract foreign investment and boost exports

Special Economic Zones (SEZs), established under the SEZ Act, 2005, are designated geographic areas with special economic regulations to attract foreign direct investment (FDI) and boost exports. SEZ units enjoy tax holidays, duty-free imports of capital goods and raw materials, simplified customs procedures, and relaxed labour laws. The primary goals are to promote exports, generate foreign exchange earnings, create employment, and attract domestic and foreign investment.
Option 1 is incorrect: Promoting agricultural development is not the primary objective of SEZs; SEZs focus on manufacturing, services, and export-oriented industries.
Option 3 is incorrect: Regulating the stock market is the function of SEBI (Securities and Exchange Board of India), not SEZs.
Option 4 is incorrect: Managing public sector enterprises is done by the administrative ministries and DIPAM (Department of Investment and Public Asset Management); SEZs are for export promotion.

Delhi Police Constable (Exe) 2025-26 – 19 December 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q91. Which four countries became full BRICS members in 2024?

(a) Egypt, Ethiopia, Iran, UAE
(b) Indonesia, Nigeria, Uganda, Bolivia
(c) Saudi Arabia, Turkey, Mexico, Argentina
(d) Belarus, Malaysia, Thailand, Cuba

Answer & solution

Answer: (a) Egypt, Ethiopia, Iran, UAE

At the BRICS Summit in Johannesburg (August 2023), six countries were invited to join as full members from January 1, 2024: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and UAE. However, Argentina declined under its new President Javier Milei. Thus, four countries — Egypt, Ethiopia, Iran, and UAE — became full BRICS members in 2024, expanding BRICS from 5 to 9 members (Brazil, Russia, India, China, South Africa + Egypt, Ethiopia, Iran, UAE).
Option 2 is incorrect: Indonesia, Nigeria, Uganda, and Bolivia were not among the countries that joined BRICS as full members in 2024; Uganda and others became BRICS partner countries in 2024.
Option 3 is incorrect: Saudi Arabia's membership was invited but not formalised in 2024; Turkey, Mexico, and Argentina did not join BRICS as full members.
Option 4 is incorrect: Belarus, Malaysia, Thailand, and Cuba were among the 13 countries that became BRICS partner countries in 2024 (Kazan Summit, October 2024), not full members.

Delhi Police Constable (Exe) 2025-26 – 18 December 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q92. Which of these is a BRICS partner country from Africa?

(a) Uganda
(b) Bolivia
(c) Malaysia
(d) Kazakhstan

Answer & solution

Answer: (a) Uganda

Uganda is a BRICS partner country from Africa. In 2024, BRICS expanded significantly. During the Kazan Summit in October 2024, thirteen countries were invited to become BRICS partner states, including Uganda from Africa. This partnership status represents a formal association below full membership.
Option 2 is incorrect: Bolivia is from South America; it was also invited as a BRICS partner country but is not from Africa.
Option 3 is incorrect: Malaysia is from Southeast Asia; it was invited as a BRICS partner but is not from Africa.
Option 4 is incorrect: Kazakhstan is from Central Asia; it was also invited as a BRICS partner but is not from Africa.

Delhi Police Constable (Exe) 2025-26 – 18 December 2025 Shift 2 · Foreign exchange reserves and exchange rates

Q93. In which year was the rupee made fully convertible on the current account?

(a) 1991
(b) 1992
(c) 1994
(d) 1996

Answer & solution

India made the rupee fully convertible on the current account in 1994, when it accepted Article VIII of the IMF's Articles of Agreement. This meant that there were no restrictions on foreign exchange for trade in goods and services, remittances, and other current account transactions. Capital account convertibility (allowing free flow of investment funds) was not fully implemented and remains restricted to date.
Option 1 is incorrect: In 1991, India devalued the rupee and introduced the LPG reforms, but full current account convertibility was not achieved that year.
Option 2 is incorrect: In 1992, the Liberalised Exchange Rate Management System (LERMS) was introduced, allowing partial convertibility, but not full convertibility.
Option 4 is incorrect: 1996 is not the year of full current account convertibility; it was achieved in 1994.

SSC CPO Paper-1 2025 – 12 December 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q94. What was the core theme of India's BRICS Chairship in 2021?

(a) Economic protectionism
(b) BRICS continuity and consensus
(c) Cultural heritage digitization
(d) Military coordination

Answer & solution

Answer: (b) BRICS continuity and consensus

Correct Answer: BRICS continuity and consensus (Option 2)
India held the BRICS Chairship in 2021. The theme of India's BRICS Chairship was 'BRICS@15: Intra-BRICS Cooperation for Continuity, Consolidation and Consensus.' The theme emphasized continuity in BRICS cooperation, consolidation of existing programs, and building consensus among member nations (Brazil, Russia, India, China, South Africa) on global issues.
Economic protectionism, cultural heritage digitization, and military coordination were not the core themes of India's 2021 BRICS Chairship.

SSC CPO Paper-1 2025 – 11 December 2025 Shift 2 · IMF and World Bank Group

Q95. Which global body promotes liberal economic reforms?

(a) UNDP
(b) IMF
(c) WHO
(d) UNESCO

Answer & solution

Answer: (b) IMF

Correct Answer: IMF (Option 2)
The International Monetary Fund (IMF) is known for promoting liberal economic reforms, including trade liberalization, privatization, deregulation, and fiscal discipline — often as conditions for its lending programs (structural adjustment programs). It promotes free-market economic policies among its member nations to ensure global economic stability.
UNDP (United Nations Development Programme) focuses on human development, poverty reduction, and sustainable development — not liberal economic reforms specifically.
WHO (World Health Organization) deals with global public health — not economic policy.
UNESCO focuses on education, science, and culture — not economic reforms.

SSC CPO Paper-1 2025 – 10 December 2025 Shift 1 · Balance of payments and current account

Q96. Consider the following statements and choose the correct option:
Statement 1: A surplus on the current account indicates that the country is lending to the rest of the world.
Statement 2: A current account is said to be in balance when payments exceed receipts.

(a) Only Statement 1 is correct
(b) Only Statement 2 is correct
(c) Both Statement 1 and Statement 2 are correct
(d) Neither Statement 1 nor Statement 2 is correct

Answer & solution

Answer: (a) Only Statement 1 is correct

Correct Answer: Only Statement 1 is correct
Statement 1: CORRECT. A current account surplus means the country is earning more from exports/services/transfers than it is spending on imports — effectively lending money to the rest of the world (net creditor position).
Statement 2: INCORRECT. A current account is in balance when receipts EQUAL payments (not when payments exceed receipts). When payments exceed receipts, it is a current account DEFICIT, not balance.
Therefore, only Statement 1 is correct.

SSC CPO Paper-1 2025 – 9 December 2025 Shift 1 · Foreign exchange reserves and exchange rates

Q97. Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R).
Assertion (A): Devaluation of the rupee in 1991 improved India's export competitiveness.
Reason (R): A weaker rupee made Indian goods cheaper in global markets.

(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 the correct explanation of A.
(c) A is true but R is false.
(d) A is false but R is true.

Answer & solution

Answer: (a) Both A and R are true and R is the correct explanation of A.

Assertion (A) is TRUE: The devaluation of the Indian rupee in 1991 (as part of the IMF-supported structural adjustment and balance of payments crisis response) did improve export competitiveness.
Reason (R) is TRUE: When the rupee is devalued (becomes weaker), Indian goods become relatively cheaper for foreign buyers (since they pay in stronger foreign currencies), making exports more competitive in global markets.
R correctly explains A: The improved export competitiveness (A) happened precisely BECAUSE a weaker rupee made Indian goods cheaper globally (R).
Therefore, Both A and R are true and R is the correct explanation of A.

SSC CPO Paper-1 2025 – 9 December 2025 Shift 2 · Foreign trade policy and EXIM

Q98. Trade policy prior to 1991 was characterized by:

(a) Free trade
(b) Import liberalization
(c) High tariffs and quotas
(d) Foreign direct investment

Answer & solution

Answer: (c) High tariffs and quotas

Correct Answer: High tariffs and quotas
Before the 1991 economic reforms, India followed an inward-looking, protectionist trade policy. The key features were: high import tariffs, strict import quotas, licensing requirements (License Raj), and heavy restrictions on foreign investment. This was to protect domestic industries under the ISI (Import Substitution Industrialization) strategy.
Option 1 (Free trade): Incorrect. India was far from free trade before 1991.
Option 2 (Import liberalization): Incorrect. This happened AFTER 1991.
Option 4 (Foreign direct investment): Incorrect. FDI was heavily restricted before 1991.

SSC Stenographer 2025 – 8 December 2025 Shift 2 · Foreign trade policy and EXIM

Q99. In the context of India's trade policies between 1947 and 1990, what was a common characteristic of the approach towards imports?

(a) Promoting imports as a way to boost domestic competition.
(b) Primarily focusing on the import of luxury goods and consumer durables.
(c) Following a strategy of import substitution to protect domestic industries.
(d) Encouraging unrestricted import of all goods.

Answer & solution

Answer: (c) Following a strategy of import substitution to protect domestic industries.

Between 1947 and 1990, India followed a strategy of import substitution . The goal was to reduce dependence on foreign goods and promote self-reliance by protecting domestic industries. Under this policy, the government imposed high tariffs, quantitative restrictions, and licensing requirements to discourage imports. Priority was given to building local industries, particularly in heavy machinery, steel, and consumer goods. The idea was that by restricting imports, Indian industries would grow without facing external competition and help the nation achieve economic independence. This approach was consistent with the broader vision of a planned economy and self-sufficiency during the early decades after independence.

SSC Stenographer 2025 – 7 December 2025 Shift 1 · ADB, AIIB, NDB and other banks

Q100. Which of the following initiatives was launched by the BRICS countries?

(a) The International Monetary Fund (IMF)
(b) The North Atlantic Treaty Organization (NATO)
(c) The New Development Bank (NDB)
(d) The World Trade Organization (WTO)

Answer & solution

Answer: (c) The New Development Bank (NDB)

The New Development Bank (NDB) , also known as the BRICS Bank , was established by the BRICS nations ( Brazil, Russia, India, China, and South Africa ) in 2014 at the Fortaleza Summit (Brazil) . Its main aim is to provide financial support for infrastructure and sustainable development projects in BRICS countries as well as other emerging economies. The headquarters of the NDB is located in Shanghai, China . The other options are incorrect because the IMF (1944) , NATO (1949) , and WTO (1995) were not launched by BRICS but by broader international or regional agreements. Hence, the correct answer is Option 3: New Development Bank (NDB).

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Q1. What was the economic rationale behind India's move to current account convertibility in 1994, and how did it impact India's external sector and global integration?

Q2. Which reform measure directly aimed to make Indian exports more competitive post-1991?

Q3. In the context of India's trade and industrial policy in 2025, which of the following best explains the challenges posed by the Inverted Duty Structure (IDS) and the policy measures adopted to mitigate its adverse impact on domestic manufacturing?

Q4. Which major global economic institution provided assistance during India's 1991 crisis, requiring economic reforms?

Q5. Which of the following best explains the core philosophy and operational implications of the Foreign Exchange Regulation Act (FERA), 1973, and why it became incompatible with India's post-1991 economic reforms?

Q6. The post-1991 reforms permitted greater inflow of Foreign Direct Investment (FDI) in several sectors. What was the primary objective of this policy shift?

Q7. Read the below statements:1. Trade Policy Reforms removed import licensing for most items.2. Devaluation of the rupee made imports cheaper.3. FDI was encouraged post-1991 through automatic approval routes.Which of the above statements is/are correct?

Q8. What happened to India’s foreign exchange reserves after the 1991 reforms?

Q9. What was the main objective of India's 'Import Substitution Policy' adopted post-independence?

Q10. Which country officially adopted the euro as its national currency on 1 January 2026, becoming the 21st member of the Eurozone?

Q11. India assumed the Chairship of which international grouping for the year 2026?

Q12. The General Agreement on Tariffs and Trade (GATT) was signed in which of the following years?

Q13. India followed which strategy to reduce dependence on foreign goods after independence?

Q14. India became a member of the World Trade Organization (WTO) to boost global trade participation. In which year did India join the WTO?

Q15. Which of the following countries became a member of the BRICS’ New Development Bank in May 2025?

Q16. Which country joined as the 9th member of New Development Bank by BRICS in 2025?

Q17. By how much was the Indian Rupee devalued in July 1991 to address the Balance of Payments crisis?

Q18. Which BRICS Summit was held in Beijing in 2022?

Q19. During the planning era, what was the objective of Import Substitution Industrialization (ISI) in India?

Q20. Which institution is responsible for formulating andimplementing India's Foreign Trade Policy?

Q21. Where was India's first Export Processing Zone (EPZ) established?

Q22. MERCOSUR is a trading bloc associated with which of the following continents?

Q23. Global Trade Outlook and Statistics 2025 was published by which of the following?

Q24. What was India's share of service exports in global service exports in 1993?

Q25. In which city was the 8th BRICS Summit held in 2016?

Q26. The Foreign Exchange Management Act (FEMA) was enacted in 1999 to replace the earlier FERA law. In which year did FEMA officially come into force?

Q27. In the Balance of Payments, an increase in foreign exchange reserves appears under which category?

Q28. Which of the following agreements signed between India and Uzbekistan officially came into effect in May 2025, having been signed in September 2024 in Tashkent?

Q29. Which country hosted the 4th BRICS Summit in 2012?

Q30. In a fixed exchange rate system, when the exchange rate is increased by a government action, it is called _____, which makesthe domestic currency cheaper.

Q31. In which country was the 2nd BRIC Summit organised in 2010?

Q32. In which year did FEMA replace FERA?

Q33. India's trade policy in the 1950s–1980s emphasized ___.

Q34. Where was the 13th BRICS Summit held in 2021?

Q35. Which Indian port was established as the site of India's first Export Processing Zone (EPZ)?

Q36. What is the main deficiency of India's trade balance?

Q37. In which year did India take over the BRICS Chairship from Russia?

Q38. In December 2025, the rupee’s (₹) appreciation against the US dollar was most likely due to which of the following actions by the RBI?

Q39. In December 2025, which country officially transferred the BRICS presidency to India during the concluding session of the 4th BRICS Sherpas Meeting?

Q40. Under the Merchandise Exports from India Scheme (MEIS), exporters are rewarded in the form of:

Q41. FDI in Multi Brand Retail Trade is permitted up to what limit?

Q42. By how much was the rupee devalued in July 1991?

Q43. In which year did India completely eliminate Quantitative Restrictions (QRs) on imports as part of trade liberalization?

Q44. Under the 2018 amendments in Foreign Direct Investment (FDI) policy approved by the Cabinet, the maximum Foreign Direct Investment (FDI) permitted under the automatic route in Single Brand Retail Trading (SBRT) is _____

Q45. Which economic model advocates that developing countries should prioritize import substitution over free trade to promote economic development?

Q46. In the context of Indian economy, the Balance of Payments typically covers _____ year/years for recording the transactions.

Q47. As of May 2025, how many percent of foreign direct investment allowed in coal mining under automatic route?

Q48. What is foreign exchange rate?

Q49. Which of the following Institution is the custodian of the foreign exchange reserve in India?

Q50. In the context of Balance on current account, which of the following is included in Invisibles?

Q51. Which of the following statement is INCORRECT regarding Foreign exchange rate?

Q52. In the context of Balance of Payment, which of the following statement is correct regarding Balance of Trade (BOT)?

Q53. The Special Economic Zones Policy in India was launched in ____.

Q54. In which year did India established its first Export Processing Zone (EPZ)?

Q55. The Asian Infrastructure Investment Bank commenced its operations in _____.

Q56. After which of the following country joining, BRIC transformed into BRICS?

Q57. The headquarter of Asian Development Bank is located in _____.

Q58. In the context of Balance of Payment, which of the following is NOT included in Capital account?

Q59. In the context of Balance of Payment, current account does record which of the following?

Q60. Which unique feature of BRICS distinguishes it from traditional Western economic blocs like G7?

Q61. The term 'round tripping' in case of Foreign Direct Investments is related to which among the following?

Q62. Which country recently assumed the chairmanship of BRICS in 2025?

Q63. The headquarters of the New Development Bank (NDB), established by BRICS countries to support infrastructure and sustainable development projects, is located in which city?

Q64. What does the acronym 'FDI' stand for in the context of economics?

Q65. In the context of international trade, what is the definition of a 'Quota'?

Q66. What does the term 'Automatic Route' imply in the context of Foreign Direct Investment (FDI)?

Q67. Which of the following countries is a founding member of BRICS, the association of major emerging economies promoting economic cooperation and development?

Q68. What economic situation is described by the term 'Trade Surplus'?

Q69. What is a 'Trade Deficit'?

Q70. What was the name of the organization that set global trade rules before the World Trade Organization (WTO)?

Q71. What was India's pre-1991 policy of trying to produce all goods domestically instead of importing them called?

Q72. Where was the first BRIC summit held in 2009?

Q73. What does the BRICS New Development Bank primarily finance?

Q74. What is the Contingent Reserve Arrangement (CRA) under BRICS designed for?

Q75. What is meant by a 'Special Economic Zone' (SEZ) in India?

Q76. Who first coined the acronym BRIC in 2001?

Q77. What is one impact of foreign investment on local economies?

Q78. What is the primary goal of the import substitution strategy adopted by India in the first seven 'five-year plans'?

Q79. In which city did the first meeting of BRIC Foreign Ministers take place in 2006?

Q80. What does the term 'Tariff' signify in the context of trade?

Q7. Read the below statements:
1. Trade Policy Reforms removed import licensing for most items.
2. Devaluation of the rupee made imports cheaper.
3. FDI was encouraged post-1991 through automatic approval routes.
Which of the above statements is/are correct?

Q20. Which institution is responsible for formulating and
implementing India's Foreign Trade Policy?

Q30. In a fixed exchange rate system, when the exchange rate is increased by a government action, it is called _____, which makes
the domestic currency cheaper.

Q96. Consider the following statements and choose the correct option:
Statement 1: A surplus on the current account indicates that the country is lending to the rest of the world.
Statement 2: A current account is said to be in balance when payments exceed receipts.

Q97. Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R).
Assertion (A): Devaluation of the rupee in 1991 improved India's export competitiveness.
Reason (R): A weaker rupee made Indian goods cheaper in global markets.