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External Sector and International Economic Organisations PYQs – Economics, SSC & Railway

174 External Sector and International Economic Organisations (Economics) questions asked in recent SSC and Railway exams, newest first, with exam, date & shift, answers and solutions – page 2 of 2.

📚 174 questionsSSC 136 · Railway 38
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SSC Stenographer 2025 – 7 December 2025 Shift 2 · WTO

Q101. What role did the WTO membership (1995) play in India’s post-reform globalization strategy?

  1. (a) Strengthened balance of payments
  2. (b) Deepened India’s integration into global trade
  3. (c) Abolished domestic subsidies completely
  4. (d) Encouraged protective tariffs
Answer & solution

Answer: (b) Deepened India’s integration into global trade

The correct answer is option 2. India’s membership in the WTO in 1995 was a key step in its globalization strategy after the 1991 reforms. It facilitated India’s deeper integration into the global trading system by committing to multilateral trade rules, reducing tariffs, liberalising trade policies, and opening up markets.
SSC Stenographer 2025 – 7 December 2025 Shift 3 · Foreign trade policy and EXIM

Q102. During the period of 1947–1990, India’s trade policy was largely characterized by:

  1. (a) A policy of free trade with minimal government intervention in international transactions.
  2. (b) An inward-looking strategy emphasizing import substitution and protection of domestic industries.
  3. (c) An aggressive export-oriented strategy focused on global competitiveness.
  4. (d) A liberal import policy aimed at providing consumers with a wide range of goods.
Answer & solution

Answer: (b) An inward-looking strategy emphasizing import substitution and protection of domestic industries.

Between 1947 and 1990, India adopted an inward-looking trade strategy , focusing on import substitution industrialization (ISI) . The government encouraged domestic production by restricting imports through high tariffs, quotas, and licenses , to reduce dependence on foreign goods. The aim was to protect infant industries and achieve self-reliance. While this policy helped build India’s industrial base, it also led to inefficiency and lack of competitiveness in global markets.
SSC CHSL Tier-1 2025 – 30 November 2025 Shift 1 · Foreign trade policy and EXIM

Q103. The first export processing zone in India was set up in which of the following year?

  1. (a) 1949
  2. (b) 1965
  3. (c) 1984
  4. (d) 1992
Answer & solution

Answer: (b) 1965

Correct Answer: Option 2 – 1965
The first Export Processing Zone (EPZ) in India was established in Kandla, Gujarat in 1965. It was set up to promote exports by providing a duty-free environment for manufacturing export- oriented goods. Kandla EPZ (now Kandla Special Economic Zone) was India's first such zone and one of Asia's first export processing zones.
Why other options are wrong:
Option 1 (1949): No EPZ was set up in India in 1949.
Option 3 (1984): The Santa Cruz Electronics Export Processing Zone (SEEPZ) was set up in 1973, not 1984.
Option 4 (1992): This is the year of economic liberalisation ; SEZs were given new impetus much later, in 2000.
SSC CHSL Tier-1 2025 – 30 November 2025 Shift 2 · FDI, FPI and FEMA

Q104. The Foreign Investment Promotion Board was initially constituted in India under the _____.

  1. (a) Prime Minister's Office
  2. (b) Parliament of India
  3. (c) Finance Commission
  4. (d) President of India
Answer & solution

Answer: (a) Prime Minister's Office

Correct Answer: Option 1 – Prime Minister's Office
The Foreign Investment Promotion Board (FIPB) was initially constituted under the Prime Minister's Office (PMO) in 1991 during the economic liberalisation period. It was later moved to the Ministry of Finance. FIPB was responsible for approving foreign direct investment proposals that required government clearance. It was abolished in 2017.
Why other options are wrong:
Option 2 (Parliament): FIPB was an executive body, not a parliamentary body.
Option 3 (Finance Commission): Finance Commission deals with the distribution of revenue between Centre and states; it did not constitute FIPB. The candidate incorrectly selected this.
Option 4 (President): FIPB was not constituted by the President of India.
SSC CHSL Tier-1 2025 – 29 November 2025 Shift 2 · ADB, AIIB, NDB and other banks

Q105. The Asian Development Bank was founded in _____.

  1. (a) 1952
  2. (b) 1966
  3. (c) 1977
  4. (d) 1987
Answer & solution

Answer: (b) 1966

The Asian Development Bank (ADB) was founded in 1966 and is headquartered in Manila, Philippines. It was established to promote economic and social development in Asia and the Pacific. India is one of the founding members of the ADB.
1952, 1977, and 1987 are incorrect years for the founding of ADB.
SSC CHSL Tier-1 2025 – 29 November 2025 Shift 2 · Foreign exchange reserves and exchange rates

Q106. In 1991, rupee was devalued in two stages and the cumulative devaluation was about _____ percent in USD terms.

  1. (a) 18
  2. (b) 28
  3. (c) 32
  4. (d) 36
Answer & solution

Answer: (a) 18

In July 1991, the Indian rupee was devalued in two stages as part of the economic reforms. The cumulative devaluation was about 18 percent in USD terms. This was done to address the severe balance of payments crisis and to make Indian exports more competitive in the international market.
28%, 32%, and 36% are incorrect figures for the 1991 devaluation.
SSC CHSL Tier-1 2025 – 28 November 2025 Shift 2 · ADB, AIIB, NDB and other banks

Q107. The New Development Bank is associated with which of the following international organisations?

  1. (a) BRICS
  2. (b) World Trade Organisation
  3. (c) QUAD
  4. (d) SAARC
Answer & solution

Answer: (a) BRICS

The New Development Bank (NDB), also known as the BRICS Development Bank, was established by the BRICS nations (Brazil, Russia, India, China, and South Africa). It was set up in 2014 and is headquartered in Shanghai, China. Its purpose is to mobilise resources for infrastructure and sustainable development in BRICS and other emerging economies.
WTO, QUAD, and SAARC are unrelated to NDB.
SSC CHSL Tier-1 2025 – 27 November 2025 Shift 2 · Foreign trade policy and EXIM

Q108. In India, projects having a minimum investment of Rs. _____ Crore in plant & machinery shall be considered for establishment as EOUs.

  1. (a) 5
  2. (b) 10
  3. (c) 1
  4. (d) 3
Answer & solution

Answer: (c) 1

As per the Foreign Trade Policy of India, Export Oriented Units (EOUs) require a minimum investment of Rs. 1 Crore in plant and machinery for their establishment. This low threshold is designed to encourage small and medium enterprises to become export-oriented.
The amounts of Rs. 5 Crore, Rs. 10 Crore, and Rs. 3 Crore are incorrect thresholds.
SSC CHSL Tier-1 2025 – 25 November 2025 Shift 3 · FDI, FPI and FEMA

Q109. In India, who was the initial head of the Foreign Investment Promotion Board?

  1. (a) Principal Secretary to the Prime Minister
  2. (b) Finance Minister
  3. (c) External Affairs Minister
  4. (d) Home Minister
Answer & solution

Answer: (a) Principal Secretary to the Prime Minister

The Foreign Investment Promotion Board (FIPB) was an inter-ministerial body of the Government of India. Initially, the Principal Secretary to the Prime Minister headed the FIPB. Later, its chairmanship moved to the Finance Ministry. FIPB was abolished in May 2017.
Finance Minister, External Affairs Minister, and Home Minister were not the initial heads of FIPB. Hence, Principal Secretary to the Prime Minister is correct.
SSC CHSL Tier-1 2025 – 20 November 2025 Shift 1 · Foreign trade policy and EXIM

Q110. Merchandise Exports from India Scheme was launched in which of the following years?

  1. (a) 1998
  2. (b) 2002
  3. (c) 2019
  4. (d) 2015
Answer & solution

Answer: (d) 2015

The Merchandise Exports from India Scheme (MEIS) was launched in 2015 as part of India's Foreign Trade Policy (FTP) 2015-2020. It was introduced to offset infrastructural inefficiencies and costs, making Indian merchandise exports more competitive in global markets. MEIS was later replaced by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Why other options are wrong: Option 1 (1998): MEIS did not exist in 1998. Option 2 (2002): Incorrect; MEIS was launched as part of the 2015-20 Foreign Trade Policy. Option 3 (2019): MEIS was already operational from 2015; it was not launched in 2019.
SSC CHSL Tier-1 2025 – 20 November 2025 Shift 2 · Foreign exchange reserves and exchange rates

Q111. The rupee was made convertible on the current account of the balance of payments in _____.

  1. (a) November 1994
  2. (b) August 1994
  3. (c) January 1995
  4. (d) March 1995
Answer & solution

Answer: (b) August 1994

Correct Answer: August 1994 (Option 2)
India made the rupee fully convertible on the current account of the balance of payments in August 1994, accepting the obligations under Article VIII of the IMF's Articles of Agreement. This was a major step in India's economic liberalisation after the 1991 reforms.
Why others are wrong:
Option 1 - November 1994: Incorrect month.
Option 3 - January 1995: Incorrect month.
Option 4 - March 1995: Incorrect month; the correct month is August 1994.
SSC CHSL Tier-1 2025 – 19 November 2025 Shift 3 · Foreign exchange reserves and exchange rates

Q112. In _____, a dual exchange rate system called Liberalised Exchange Rate Management System (LERMS) was introduced in India.

  1. (a) February 1993
  2. (b) March 1992
  3. (c) May 1992
  4. (d) October 1992
Answer & solution

Answer: (b) March 1992

Correct Answer: March 1992
The Liberalised Exchange Rate Management System (LERMS) was introduced in India in March 1992 as part of the economic reforms following the 1991 balance of payments crisis. LERMS was a dual exchange rate system where 40% of foreign exchange earnings had to be surrendered to the RBI at the official rate, while the remaining 60% could be converted at market rates. LERMS was a transitional step before the move to a unified exchange rate in March 1993.
Why other options are wrong:
- February 1993: LERMS was replaced by a unified market-determined exchange rate in 1993; not when it was introduced.
- May 1992: LERMS was introduced in March 1992, not May.
- October 1992: Not the correct month for LERMS introduction.
SSC CHSL Tier-1 2025 – 18 November 2025 Shift 3 · Foreign trade policy and EXIM

Q113. From October 1, 2023, which organisation has introduced the Carbon Border Adjustment Mechanism (CBAM)?

  1. (a) United Nations
  2. (b) BRICS
  3. (c) European Union
  4. (d) International Court of Justice
Answer & solution

Answer: (c) European Union

Correct Answer: European Union (Option 3)
The Carbon Border Adjustment Mechanism (CBAM) was introduced by the European Union (EU) from October 1, 2023, as part of its European Green Deal. CBAM is a carbon pricing instrument that places a carbon price on imports of certain goods from countries outside the EU where less ambitious climate policies apply. It aims to prevent 'carbon leakage' (where production shifts to countries with less stringent climate rules). Currently it covers sectors like iron, steel, cement, aluminium , fertilizers, electricity, and hydrogen.
The United Nations, BRICS, and International Court of Justice have not introduced CBAM.
SSC CHSL Tier-1 2025 – 18 November 2025 Shift 3 · Foreign trade policy and EXIM

Q114. The Special Economic Zones Act, 2005, was passed by the Indian Parliament in _____.

  1. (a) May, 2005
  2. (b) July, 2005
  3. (c) September, 2005
  4. (d) December, 2005
Answer & solution

Answer: (a) May, 2005

Correct Answer: May, 2005 (Option 1)
The Special Economic Zones (SEZ) Act, 2005 was passed by the Indian Parliament in May 2005 and came into effect on 10 February 2006 after receiving Presidential assent and notification. The Act provided a comprehensive legal framework for SEZs in India, replacing the earlier SEZ policy introduced in 2000 under the Foreign Trade Policy. SEZs are designated areas with special economic regulations to attract foreign investment and promote exports.
July, September, and December 2005 are incorrect months for the passage of the SEZ Act.
SSC CHSL Tier-1 2025 – 17 November 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q115. As of March 2024, the G-20 members represent around _____ of the global GDP.

  1. (a) 25%
  2. (b) 40%
  3. (c) 62%
  4. (d) 85%
Answer & solution

Answer: (d) 85%

As of March 2024, the G-20 (Group of Twenty) member countries collectively represent approximately 85% of the global GDP. The G-20 also accounts for about 75% of international trade and around two-thirds of the world's population. It is the premier international forum for global economic cooperation. Why other options are wrong: Option 1 (25%) and Option 2 (40%): Too low. These do not reflect the economic weight of the G-20. Option 3 (62%): Incorrect figure; the correct share is approximately 85%.
SSC CHSL Tier-1 2025 – 17 November 2025 Shift 2 · Foreign trade policy and EXIM

Q116. In India, Directorate General of Foreign Trade (DGFT) was incepted in the year ___.

  1. (a) 1997
  2. (b) 1991
  3. (c) 1995
  4. (d) 1993
Answer & solution

Answer: (b) 1991

Correct Answer: 1991 (Option 2)
The Directorate General of Foreign Trade (DGFT) was established in 1991 under the Ministry of Commerce and Industry, Government of India. It replaced the earlier Chief Controller of Imports and Exports (CCI&E). DGFT formulates and implements India's foreign trade policy and issues Importer Exporter Code (IEC). Its establishment was part of the 1991 economic reforms.
1997, 1995, and 1993 are incorrect years for DGFT's establishment.
SSC CHSL Tier-1 2025 – 15 November 2025 Shift 1 · Foreign exchange reserves and exchange rates

Q117. What immediate measure was taken in 1991 to resolve the balance of payments crisis in India?

  1. (a) Increases restrictions on import
  2. (b) Devaluation of the rupee against foreign currencies
  3. (c) Revaluation of the rupee against foreign currencies
  4. (d) Introduction of fixed exchange rate
Answer & solution

Answer: (b) Devaluation of the rupee against foreign currencies

In 1991, India faced a severe balance of payments (BOP) crisis. The immediate measure taken was the Devaluation of the Indian Rupee against foreign currencies (by about 18-19%). This made Indian exports cheaper and imports costlier, helping correct the trade deficit and earn foreign exchange. Why others are wrong: - Increases restrictions on import: While import compression was also done, the key immediate measure was devaluation. - Revaluation: Revaluation means increasing the currency's value; this would worsen the BOP crisis, not solve it. - Introduction of fixed exchange rate: India moved towards a market-determined exchange rate (flexible), not a fixed one.
SSC CHSL Tier-1 2025 – 14 November 2025 Shift 1 · Foreign trade policy and EXIM

Q118. In India, the SEZs Rules, 2006 came into effect in ________.

  1. (a) November, 2006
  2. (b) February, 2006
  3. (c) June, 2006
  4. (d) September, 2006
Answer & solution

Answer: (b) February, 2006

The Special Economic Zones (SEZ) Rules, 2006 came into effect in February 2006 in India, alongside the SEZ Act, 2005. The rules provide for the establishment, development, and management of SEZs to promote exports, attract investments, and generate employment. November 2006, June 2006, and September 2006 do not correspond to when these rules came into effect.
SSC CHSL Tier-1 2025 – 14 November 2025 Shift 3 · Foreign trade policy and EXIM

Q119. The inward looking trade strategy followed by Indian in the few initial five year plans is also known as _____.

  1. (a) Export enhancement
  2. (b) Free trade expansion
  3. (c) Import substitution
  4. (d) Foreign investment expansion
Answer & solution

Answer: (c) Import substitution

Correct Answer: Import substitution
During the initial Five Year Plans (1951-1991), India followed an inward-looking trade strategy known as Import Substitution Industrialisation (ISI). The strategy aimed to reduce dependence on foreign goods by developing domestic industries to produce goods that were previously imported. This involved high tariffs, import restrictions, and industrial licensing.
Why other options are wrong:
- Export enhancement: An outward-looking strategy focusing on boosting exports; the opposite of India's initial approach.
- Free trade expansion: Involves reducing barriers to trade; India was highly protectionist in the initial plan period.
- Foreign investment expansion: India restricted FDI in early years; this was not the strategy followed.
SSC CHSL Tier-1 2025 – 14 November 2025 Shift 2 · Foreign trade policy and EXIM

Q120. Service Export from India Scheme was launched in which of the following years?

  1. (a) 2015
  2. (b) 2017
  3. (c) 2011
  4. (d) 2008
Answer & solution

Answer: (a) 2015

The Service Export from India Scheme (SEIS) was launched in 2015 under the Foreign Trade Policy 2015-2020. It replaced the earlier Served from India Scheme (SFIS) and aimed to incentivise export of notified services from India. Why others are wrong: - 2017: Not the launch year of SEIS. - 2011: The scheme in this period was called SFIS, not SEIS. - 2008: SEIS was not launched in 2008.
SSC CHSL Tier-1 2025 – 13 November 2025 Shift 2 · Foreign trade policy and EXIM

Q121. In which year was the Special Economic Zones (SEZs) policy launched in India?

  1. (a) 1998
  2. (b) 2002
  3. (c) 1999
  4. (d) 2000
Answer & solution

Answer: (d) 2000

India's Special Economic Zones (SEZ) policy was announced in April 2000 as part of the Export-Import (EXIM) Policy of 2000. The policy aimed to provide an internationally competitive environment for exports. The SEZ Act was subsequently passed in 2005 and came into force in 2006. Why others are wrong: - 1998 and 1999: The SEZ policy had not been announced in these years. - 2002: The SEZ Act was not in place yet; the policy was announced in 2000.
SSC CHSL Tier-1 2025 – 13 November 2025 Shift 2 · Foreign trade policy and EXIM

Q122. In the context of trade policy tools, which of the following is considered as tariff measure?
I. Export taxes
II. Import taxes

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (c) Both I and II

Tariff measures are taxes imposed on goods crossing international borders. Both Export taxes (taxes on goods leaving a country) and Import taxes (taxes on goods entering a country) are considered tariff measures under trade policy. Therefore, Both I and II are tariff measures. Why others are wrong: - Only I or Only II: Both export and import taxes are tariffs; excluding either one is incorrect.
SSC CHSL Tier-1 2025 – 12 November 2025 Shift 2 · Foreign trade policy and EXIM

Q123. In the context of trade policy tools, which of the following is considered as a non-tariff measure?
I. Antidumping measures
II. Technical barriers to trade measures

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (c) Both I and II

Both antidumping measures and technical barriers to trade (TBT) are non-tariff measures (NTMs) in international trade. Antidumping measures are duties imposed to counter imports priced unfairly below cost. Technical barriers include product standards, regulations, and testing requirements applied to imports. Both are recognized WTO-covered non-tariff instruments.
SSC CHSL Tier-1 2025 – 12 November 2025 Shift 2 · Foreign trade policy and EXIM

Q124. In the context of trade policy tools, which of the following is considered as non-tariff measure?
I. Anti-dumping measures
II. Technical barriers to trade measures

  1. (a) Only I
  2. (b) Only II
  3. (c) Both I and II
  4. (d) Neither I nor II
Answer & solution

Answer: (c) Both I and II

Correct Answer: Both I and II
Non-tariff measures (NTMs) are trade policy tools other than customs tariffs that can restrict or regulate international trade. Both the given measures are NTMs:
- Anti-dumping measures: Duties imposed on imported goods sold below fair value to protect domestic industries. These are non-tariff in nature as they go beyond standard customs duties.
- Technical barriers to trade (TBT): These include product standards, testing requirements, labelling, and certification procedures that countries impose on imports. They are among the most common NTMs.
Why 'Only I' is wrong: TBT is also a non-tariff measure.
Why 'Only II' is wrong: Anti-dumping is also a non-tariff measure.
Why 'Neither' is wrong: Both are well- recognised NTMs under WTO framework.
SSC CHSL Tier-1 2025 – 12 November 2025 Shift 3 · FDI, FPI and FEMA

Q125. Following the Industrial Policy _____ of India the government has set up a special board known as Foreign Investment Promotion Board.

  1. (a) 1948
  2. (b) 1956
  3. (c) 1977
  4. (d) 1991
Answer & solution

Answer: (d) 1991

Correct Answer: 1991
The Foreign Investment Promotion Board (FIPB) was set up following the Industrial Policy of 1991, which marked India's economic liberalisation . The 1991 policy opened up the Indian economy to foreign investment and the FIPB was created to facilitate and approve foreign direct investment (FDI) proposals. FIPB was later abolished in 2017 as part of further liberalisation .
Why other options are wrong:
- 1948: The Industrial Policy of 1948 was the first such policy post-Independence; no FIPB was set up then.
- 1956: The Industrial Policy of 1956 focused on classification of industries; FIPB was not formed then.
- 1977: The 1977 policy under Janata government focused on small-scale industries; no FIPB formed.
SSC CGL Tier-1 2025 – 24 September 2025 Shift 1 · Foreign trade policy and EXIM

Q126. Which of the following statements about output markets in an open economy iscorrect?

  1. (a) A country can only produce what it consumes
  2. (b) Consumers are restricted to domestically produced goods
  3. (c) Trade in goods and services allows wider consumer and producer choice
  4. (d) Only producers benefit from international trade
Answer & solution

Answer: (c) Trade in goods and services allows wider consumer and producer choice

In an open economy, the output market is integrated with the rest of the world.
Free trade in goods and services widens consumer choices (varieties from abroad) and producer choices (export markets), benefiting both.
Other statements are characteristics of a closed economy or are incorrect.
SSC CGL Tier-1 2025 – 24 September 2025 Shift 3 · WTO

Q127. Read the following statements carefully and choose the correct option regarding Assertion (A) and Reason (R).
Assertion(A): WTO encourages free and fair trade across nations.
Reason(R): It allows countries to impose arbitrary restrictions to protect domestic industries.

  1. (a) Both A and R are true and R is the correct explanation of A.
  2. (b) Both A and R are true but R is not the correct explanation of A.
  3. (c) A is true but R is false.
  4. (d) A is false but R is true.
Answer & solution

Answer: (c) A is true but R is false.

Assertion is true: WTO's objective is to encourage free and fair trade across nations.
Reason is false: WTO actually restricts arbitrary trade restrictions and aims to reduce them; it does not allow countries to impose them arbitrarily.
Hence A is true but R is false.
SSC CGL Tier-1 2025 – 23 September 2025 Shift 1 · WTO

Q128. What is the role of WTO with respect to globalization?

  1. (a) Provide military support
  2. (b) Monitor human rights violations
  3. (c) Ensure fair trade rules among nations
  4. (d) Control migration policies
Answer & solution

Answer: (c) Ensure fair trade rules among nations

WTO is the international body governing global trade. Its primary role is to ensure fair, predictable, and free trade among member nations and settle trade disputes.
SSC CGL Tier-1 2025 – 22 September 2025 Shift 2 · Foreign exchange reserves and exchange rates

Q129. Consider the following statements and choose the correct option:
Statement 1: Unlimited convertibility and fixed price conversion affect the credibility of a currency system.
Statement 2: The international monetary system was established to regulate internal fiscal policies of countries.

  1. (a) Only Statement 1 is correct
  2. (b) Only Statement 2 is correct
  3. (c) Both Statement 1 and Statement 2 are correct
  4. (d) Neither Statement 1 nor Statement 2 is correct
Answer & solution

Answer: (a) Only Statement 1 is correct

Statement 1 is correct: convertibility terms and fixed conversion prices influence confidence in a currency.
Statement 2 is wrong: the international monetary system regulates cross-border monetary and exchange relations, not the internal fiscal policies of countries.
Hence only Statement 1 is correct.
SSC CGL Tier-1 2025 – 20 September 2025 Shift 1 · Foreign trade policy and EXIM

Q130. What was the main rationale for the policy of import substitution during the first seven Five Year Plans?

  1. (a) To expand international trade
  2. (b) To attract foreign investors
  3. (c) To protect infant domestic industries
  4. (d) To create export dependency
Answer & solution

Answer: (c) To protect infant domestic industries

- Import Substitution Industrialisation (ISI) was adopted to build domestic industries that were in their infancy.
- High tariffs and import restrictions shielded them from foreign competition until they were competitive.
- This was the dominant development strategy in India from 1950s to 1991.
SSC CGL Tier-1 2025 – 20 September 2025 Shift 2 · Foreign trade policy and EXIM

Q131. What was the primary aim of import substitution policy in India's early planning era?

  1. (a) Promote export-led industrialisation
  2. (b) Encourage foreign capital inflow
  3. (c) Replace foreign imports with domestic production
  4. (d) Liberalise trade barriers
Answer & solution

Answer: (c) Replace foreign imports with domestic production

Import Substitution Industrialisation (ISI), pursued in early Indian planning, aimed to develop domestic industries to replace imported goods, thereby achieving self-reliance and reducing dependence on foreign imports.
It was the opposite of export promotion and liberalisation.
Hence, Option 3 is correct.
SSC CGL Tier-1 2025 – 18 September 2025 Shift 2 · Foreign trade policy and EXIM

Q132. Which of the following best reflects the strategic impact of the India–Australia Economic Cooperation and Trade Agreement (ECTA) after three years of implementation?

  1. (a) ECTA removed all tariffs on Australian farm goods unilaterally.
  2. (b) ECTA mainly benefitted old sectors like cotton, with little new growth.
  3. (c) ECTA led to 14% export growth (2022–24) and added new items like Air Liquefaction Machinery.
  4. (d) ECTA includes mutual defense procurement via an Indo-Pacific charter.
Answer & solution

Answer: (c) ECTA led to 14% export growth (2022–24) and added new items like Air Liquefaction Machinery.

ECTA is a trade pact, not a defense pact — option 4 is wrong.
Tariffs were reduced mutually, not unilaterally — option 1 is wrong.
Trade expanded with new product categories like Air Liquefaction Machinery and recorded about 14% export growth in 2022–24.
Henceoption 3is the most accurate.
SSC CGL Tier-1 2025 – 16 September 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q133. Fill in the Blank:
During India’s BRICS Chairship in 2021, key initiatives included the Digital Health Summit and the _____ for environmental cooperation.

  1. (a) BRICS Water Security Pact
  2. (b) BRICS Alliance for Green Tourism
  3. (c) BRICS Climate Finance Agreement
  4. (d) BRICS Sustainable Energy Forum
Answer & solution

Answer: (b) BRICS Alliance for Green Tourism

Under India’s 2021 BRICS chairship, the BRICS Alliance for Green Tourism was launched to promote eco-friendly tourism and environmental cooperation among the BRICS nations along with the Digital Health Summit.
SSC CGL Tier-1 2025 – 16 September 2025 Shift 3 · Foreign trade policy and EXIM

Q134. What is the primary aim of TIES?

  1. (a) Export infra development
  2. (b) Cold storage for dairy
  3. (c) PMFBY support
  4. (d) Drug pricing regulation
Answer & solution

Answer: (a) Export infra development

TIES (Trade Infrastructure for Export Scheme) aims at developing export-oriented infrastructure such as ports, ICDs, cold chains, etc., to enhance India’s export competitiveness.
SSC CGL Tier-1 2025 – 16 September 2025 Shift 3 · Foreign trade policy and EXIM

Q135. Read the following Assertion (A) and Reason (R) carefully and choose the correct option.
Assertion (A): India adopted import substitution during the planning era.
Reason (R): This was to protect infant domestic industries from foreign competition.

  1. (a) Both A and R are true and R is the correct explanation of A.
  2. (b) Both A and R are true but R is not the correct explanation of A.
  3. (c) A is true but R is false.
  4. (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.

A is true — India’s planning era (especially the 2nd Five-Year Plan onwards) adopted an import-substitution industrialization strategy.
R is true — the chief objective was to protect nascent domestic industries from foreign competition.
R correctly explains A.
SSC CGL Tier-1 2025 – 14 September 2025 Shift 1 · Foreign exchange reserves and exchange rates

Q136. Which mechanism did India operationalize in 2024 to strengthen regional financial resilience within SAARC?

  1. (a) SAARC Development Fund capital increase
  2. (b) SAARC Currency Swap Framework (2024–27)
  3. (c) SAARC Trade Insurance Scheme
  4. (d) SAARC Sovereign Credit Pool
Answer & solution

Answer: (b) SAARC Currency Swap Framework (2024–27)

In 2024, the Reserve Bank of India operationalised a revised SAARC Currency Swap Framework for the period 2024-27.
Under this framework, India provides short-term foreign-currency and rupee swap support to SAARC central banks to help them meet balance-of-payments and liquidity needs.
It is not a fund capital increase, a trade insurance scheme, or a sovereign credit pool.
Hence the correct mechanism is the SAARC Currency Swap Framework (2024-27).
SSC CGL Tier-1 2025 – 14 September 2025 Shift 2 · ADB, AIIB, NDB and other banks

Q137. Where was the Americas Regional Office of the New Development Bank (NDB) announced to be established during the BRICS Foreign Ministers' Meeting in 2018?

  1. (a) Mexico City
  2. (b) Buenos Aires
  3. (c) São Paulo
  4. (d) Lima
Answer & solution

Answer: (c) São Paulo

The NDB's Americas Regional Office was announced to be set up in São Paulo, Brazil, during the 2018 BRICS Foreign Ministers' Meeting. This complements its headquarters in Shanghai.
Mexico City, Buenos Aires, and Lima were not selected for this office.
SSC CGL Tier-1 2025 – 13 September 2025 Shift 1 · FDI, FPI and FEMA

Q138. Which of the following statements correctly reflect India's recent (2024) economic diplomacy and domestic investment facilitation reforms?
1) The India–Uzbekistan BIT allows unconditional access to international arbitration without exhausting local remedies.
2) The National Infrastructure Readiness Index (NIRI) solely ranks Smart Cities and excludes private investment indicators.

  1. (a) Only 1
  2. (b) Only 2
  3. (c) 1 and 2 Both are correct
  4. (d) Neither 1 nor 2 is correct
Answer & solution

Answer: (d) Neither 1 nor 2 is correct

Statement 1: The India–Uzbekistan Bilateral Investment Treaty (BIT, 2024), in line with India's Model BIT, requires the exhaustion of local remedies before approaching international arbitration. So 'unconditional access' is incorrect.
Statement 2: The National Infrastructure Readiness Index (NIRI) is designed for broader infrastructure / investment readiness and includes private investment-related indicators rather than ranking only Smart Cities.
Both statements are incorrect.
Hence the correct option is 'Neither 1 nor 2 is correct'.
SSC CGL Tier-1 2025 – 13 September 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q139. Consider the following statements regarding BRICS Science, Technology and Innovation (STI) cooperation:
1) It is based on mutual benefit and public-good-driven innovation.
2) It is governed only through annual Heads of State Summits.
Which of the statements is/are correct?

  1. (a) Only 1 is correct
  2. (b) Only 2 is correct
  3. (c) Both 1 and 2 are correct
  4. (d) Neither 1 nor 2 is correct
Answer & solution

Answer: (a) Only 1 is correct

• BRICS STI Cooperation:
• Statement 1: BRICS STI is based on mutual benefit and public-good-driven innovation — CORRECT ✓
• Statement 2: BRICS STI is NOT governed ONLY through Heads of State Summits. It is managed through multiple ministerial meetings, working groups, and frameworks — INCORRECT.
• Answer: Only 1 is correct
SSC CGL Tier-1 2025 – 13 September 2025 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q140. What initiative was launched in 2021 under India's BRICS Presidency to boost cross-border startup collaboration and innovation?

  1. (a) BRICS Innovation Pact
  2. (b) BRICS Startup Forum
  3. (c) BRICS SME Exchange
  4. (d) BRICS Economic Dialogue
Answer & solution

Answer: (b) BRICS Startup Forum

The BRICS Startup Forum was launched in 2021 under India's BRICS Presidency to promote cross-border startup collaboration, innovation and access to BRICS markets.
The other names are not official BRICS 2021 initiatives.
SSC CGL Tier-1 2025 – 12 September 2025 Shift 1 · FDI, FPI and FEMA

Q141. What is the core structural focus of the 2024 India–UAE Bilateral Investment Treaty (BIT) within India's international investment strategy?

  1. (a) Proposes joint sovereign funds and links INR swap with UAE banks.
  2. (b) Focuses on pre-establishment rights and UAE-based arbitration.
  3. (c) Assures post-establishment investor confidence via standard and national treatment.
  4. (d) Aims at GCC-wide tax regulation under India-led digital framework.
Answer & solution

Answer: (c) Assures post-establishment investor confidence via standard and national treatment.

The 2024 India–UAE BIT focuses on post-establishment protection of investors through standards like fair and equitable treatment and national treatment.
It does not include pre-establishment rights or sovereign funds.
Hence, the answer is option 3.
SSC CGL Tier-1 2025 – 12 September 2025 Shift 3 · Economic groupings (BRICS, G20, ASEAN)

Q142. Which city hosted the Meeting of the BRICS Ministers of Foreign Affairs on 4 June 2018?

  1. (a) Pretoria, South Africa
  2. (b) Brasilia, Brazil
  3. (c) Beijing, China
  4. (d) New Delhi, India
Answer & solution

Answer: (a) Pretoria, South Africa

• BRICS 2018 (Static GK):
• In 2018, South Africa held the BRICS chairmanship.
• The Meeting of BRICS Ministers of Foreign Affairs was hosted in Pretoria, South Africa on 4 June 2018.
• The 10th BRICS Summit was also held in Johannesburg, South Africa in 2018.
RRB NTPC UG CBT-1 2024-25 – 8 September 2025 Shift 1 · Balance of payments and current account

Q143. Between 1991 and 2020, India’s export-import trends show:

  1. (a) Continuous decline of imports
  2. (b) Rising imports outpacing exports and widening the trade deficit
  3. (c) Export-to-import ratio remaining at 1:1
  4. (d) Trade surplus every year
Answer & solution

Answer: (b) Rising imports outpacing exports and widening the trade deficit

RRB NTPC UG CBT-1 2024-25 – 8 September 2025 Shift 2 · FDI, FPI and FEMA

Q144. Globalisation has led to increased cross-border flows of technology. Which policy encourages technology transfer under globalisation?

  1. (a) Import substitution policy
  2. (b) Licensing raj
  3. (c) Nationalisation
  4. (d) Automatic route for FDI
Answer & solution

Answer: (d) Automatic route for FDI

RRB NTPC UG CBT-1 2024-25 – 13 August 2025 Shift 1 · Foreign trade policy and EXIM

Q145. Special Economic Zones (SEZs) were established to promote export-oriented industrialisation. What is a primary incentive offered to firms operating in SEZs?

  1. (a) Strict labour laws
  2. (b) Higher import duties
  3. (c) Tax holidays and infrastructure support
  4. (d) Ban on foreign investments
Answer & solution

Answer: (c) Tax holidays and infrastructure support

RRB NTPC UG CBT-1 2024-25 – 13 August 2025 Shift 3 · WTO

Q146. India has been a World Trade Organization (WTO) member since _____.

  1. (a) 2000
  2. (b) 2005
  3. (c) 1990
  4. (d) 1995
Answer & solution

Answer: (d) 1995

RRB NTPC UG CBT-1 2024-25 – 12 August 2025 Shift 2 · Foreign trade policy and EXIM

Q147. Tariff reforms were central to the liberalisation of trade. What happened to import tariffs after 1991?

  1. (a) It remained unchanged
  2. (b) It increased
  3. (c) It gradually reduced
  4. (d) It was replaced with import bans
Answer & solution

Answer: (c) It gradually reduced

RRB NTPC UG CBT-1 2024-25 – 8 August 2025 Shift 1 · FDI, FPI and FEMA

Q148. What is the rank of the services sector in terms of the top recipient of FDI equity in FY 2024-25, as per the data of Ministry of Commerce and Industry?

  1. (a) First
  2. (b) Second
  3. (c) Fourth
  4. (d) Third
Answer & solution

Answer: (a) First

RRB NTPC UG CBT-1 2024-25 – 7 August 2025 Shift 1 · WTO

Q149. Which international organisation supports globalisation and free trade?

  1. (a) WTO
  2. (b) UNESCO
  3. (c) IMF
  4. (d) WHO
Answer & solution

Answer: (a) WTO

SSC Selection Post 2025 (Phase XIII) – 31 July 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q150. What is the main purpose of BRICS?

  1. (a) Military Alliance
  2. (b) Economic Cooperation
  3. (c) Space Exploration
  4. (d) Maritime security
Answer & solution

Answer: (b) Economic Cooperation

Correct Answer: Option 2 – Economic Cooperation
BRICS (Brazil, Russia, India, China, South Africa) is primarily a grouping focused on economic cooperation and development. Originally coined as BRIC by Goldman Sachs economist Jim O'Neill in 2001 to describe the four fastest-growing economies, it became a formal grouping in 2006 (South Africa joined in 2010). Main objectives: economic cooperation and trade among member nations; reform of global financial institutions (IMF, World Bank) to give emerging economies more voice; New Development Bank (NDB, headquartered in Shanghai) for infrastructure financing in developing nations; technology and science cooperation. BRICS represents about 42% of the world's population and ~24% of global GDP.
Option 1 (Military Alliance): BRICS is not a military alliance — it has no collective defence treaty like NATO.
Option 3 (Space Exploration): While BRICS member nations have their own space agencies, space exploration is not the primary purpose of BRICS.
Option 4 (Maritime security): Maritime security is not the primary mandate of BRICS, though it may be discussed in meetings.
SSC Selection Post 2025 (Phase XIII) – 31 July 2025 Shift 3 · WTO

Q151. Which organization preceded the WTO?

  1. (a) UNOP
  2. (b) IMF
  3. (c) GATT
  4. (d) World Bank
Answer & solution

Answer: (c) GATT

Correct Answer: Option 3 – GATT
The World Trade Organization (WTO) was established on January 1, 1995, as the successor to the General Agreement on Tariffs and Trade (GATT). GATT was a multilateral trade agreement signed in 1947 (Geneva) to reduce tariffs and other trade barriers and promote international trade. GATT was a provisional agreement (not a formal international organisation ) that evolved through eight rounds of negotiations (Kennedy Round, Tokyo Round, Uruguay Round, etc.). The Uruguay Round (1986–1994) culminated in the Marrakesh Agreement, which transformed GATT into the WTO — a permanent international organisation with stronger dispute settlement mechanisms.
Option 1 (UNOP): Not a real international trade organisation .
Option 2 (IMF): The International Monetary Fund (IMF) deals with international monetary cooperation and financial stability — not the predecessor to WTO.
Option 4 (World Bank): The World Bank provides development finance — not the predecessor to WTO.
SSC Selection Post 2025 (Phase XIII) – 29 July 2025 Shift 2 · Foreign trade policy and EXIM

Q152. What is the primary goal of a bilateral trade agreement?

  1. (a) Increase trade barriers
  2. (b) Promote free trade between two countries
  3. (c) Reduce foreign investment
  4. (d) Nationalize industries
Answer & solution

Answer: (b) Promote free trade between two countries

Correct Answer: Option 2 – Promote free trade between two countries
A bilateral trade agreement (BTA) is a trade pact between exactly two countries (or trading blocs) aimed at promoting free trade by reducing or eliminating tariffs, quotas, and other trade barriers between them. Examples: India-UAE CEPA (Comprehensive Economic Partnership Agreement, 2022), India-Australia ECTA (Economic Cooperation and Trade Agreement, 2022), India-Mauritius CECPA (2021). BTAs typically cover goods, services, investment, and intellectual property.
Option 1 (Increase trade barriers): The opposite of a trade agreement's purpose. Trade agreements reduce barriers.
Option 3 (Reduce foreign investment): Trade agreements generally encourage FDI by creating predictable, open economic environments. Reducing investment is contrary to trade agreement objectives.
Option 4 (Nationalize industries): Nationalization is a domestic policy decision unrelated to bilateral trade agreements.
SSC Selection Post 2025 (Phase XIII) – 29 July 2025 Shift 3 · FDI, FPI and FEMA

Q153. What is the role of FII in India economic reforms?

  1. (a) Support agriculture subsidies
  2. (b) Invest in government salaries
  3. (c) Invest in India financial markets
  4. (d) Subsidize rural infrastructure
Answer & solution

Answer: (c) Invest in India financial markets

Correct Answer: Option 3 – Invest in India financial markets
Foreign Institutional Investors (FIIs) — now officially termed Foreign Portfolio Investors (FPIs) since SEBI's 2014 regulations — invest in India's financial markets, primarily: equity markets (stock exchanges — NSE, BSE), debt markets (government bonds, corporate bonds), and money market instruments. FIIs/FPIs bring foreign capital into Indian capital markets, providing liquidity, improving price discovery, and enabling companies to raise funds. FII investments have been an important component of India's economic liberalisation since 1992 when they were first permitted.
Option 1 (Agriculture subsidies): Agriculture subsidies are provided by the central and state governments through budget allocations; FIIs have no role in agriculture subsidies.
Option 2 (Invest in government salaries): Government salaries are funded through tax revenues and budget; FIIs do not fund government wages.
Option 4 (Subsidize rural infrastructure): Rural infrastructure is funded by government schemes (PMGSY, PMAY-G, etc.); FIIs do not subsidize rural infrastructure.
SSC Selection Post 2025 (Phase XIII) – 28 July 2025 Shift 1 · ADB, AIIB, NDB and other banks

Q154. What is the name of the development bank established by BRICS countries?

  1. (a) BRICS Development Bank
  2. (b) New Development Bank
  3. (c) Global Economic Bank
  4. (d) Emerging Nations Bank
Answer & solution

Answer: (b) New Development Bank

Correct Answer: Option 2 – New Development Bank
The New Development Bank (NDB) was established by BRICS nations (Brazil, Russia, India, China, South Africa) in 2014 (Fortaleza Summit) and became operational in 2015, with headquarters in Shanghai, China. The NDB finances infrastructure and sustainable development projects in emerging economies and developing countries. It was designed as an alternative/complement to traditional institutions like the World Bank and IMF.
Option 1 (BRICS Development Bank): This was an informal early name used before the official name 'New Development Bank' was adopted at the 6th BRICS Summit (2014).
Option 3 (Global Economic Bank): No such official institution exists.
Option 4 (Emerging Nations Bank): No such official institution exists.
SSC Selection Post 2025 (Phase XIII) – 28 July 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q155. Which of the following best characterizes the structural focus areas of BRICS cooperation in recent years?

  1. (a) Economic integration, regional military defense, and cultural exchange
  2. (b) Politics and security, economy and finance, and people-to-people engagement
  3. (c) Free trade agreements, military alliances, and counter-terrorism
  4. (d) Monetary policy, green energy, and space collaboration
Answer & solution

Answer: (b) Politics and security, economy and finance, and people-to-people engagement

Correct Answer: Option 2 – Politics and security, economy and finance, and people-to-people engagement
BRICS (Brazil, Russia, India, China, South Africa — expanded to BRICS+ in 2024) cooperation is structured around three official pillars: (1) Politics and Security — peace, counter-terrorism, UN reform, multilateralism; (2) Economy and Finance — trade, investment, New Development Bank, BRICS Currency discussions, digital economy; (3) People-to-People Engagement — education, culture, youth, academia, sports. These three pillars are formally recognized in BRICS summit declarations.
Option 1 (Regional military defense): BRICS does not have a military defense component — members have divergent security alliances (Russia-China vs. India-Western partnerships).
Option 3 (Free trade agreements and military alliances): BRICS does not have a free trade agreement or military alliance; it is a consultative forum.
Option 4 (Monetary policy, green energy, space): While BRICS discusses finance and sustainability, this is not the official structural characterization of BRICS' three cooperation pillars.
SSC Selection Post 2025 (Phase XIII) – 26 July 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q156. What is one of the key sectors focused on by the BRICS Business Council?

  1. (a) Tourism
  2. (b) Infrastructure
  3. (c) Fashion
  4. (d) Entertainment
Answer & solution

Answer: (b) Infrastructure

Correct Answer: Option 2 – Infrastructure
The BRICS Business Council, established in 2013, promotes private sector engagement among BRICS nations (Brazil, Russia, India, China, South Africa). Infrastructure is one of the key sectors the Council focuses on, alongside manufacturing, agribusiness, energy, digital economy, and financial services. Infrastructure development (transportation networks, smart cities, ports, energy infrastructure) is crucial for BRICS economies' growth and connectivity.
Option 1 (Tourism): While tourism cooperation exists within BRICS, it is not the primary key sector of the Business Council.
Option 3 (Fashion): Fashion/textiles is not a primary focus area of the BRICS Business Council.
Option 4 (Entertainment): Entertainment is not a major focus sector of the BRICS Business Council.
SSC Selection Post 2025 (Phase XIII) – 25 July 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q157. What is the main purpose of BRICS?

  1. (a) Military alliance
  2. (b) Economic cooperation and development
  3. (c) Cultural exchange
  4. (d) Space exploration
Answer & solution

Answer: (b) Economic cooperation and development

Correct Answer: Option 2 – Economic cooperation and development
BRICS (Brazil, Russia, India, China, South Africa) is a multilateral grouping whose main purpose is to foster economic cooperation, development, and reform of international financial institutions. Key outcomes include the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) to provide financial support to member nations. BRICS also cooperates on trade, investment, agriculture, energy, and technology.
Option 1 (Military alliance): BRICS is not a military alliance; defense cooperation is not its core mandate.
Option 3 (Cultural exchange): While cultural exchange occurs within BRICS, it is not the primary purpose.
Option 4 (Space exploration): Not the primary mandate of BRICS, though science and technology cooperation exists.
SSC Selection Post 2025 (Phase XIII) – 24 July 2025 Shift 1 · Economic groupings (BRICS, G20, ASEAN)

Q158. Which are the 5 countries that form part of the BRICS alliance?

  1. (a) Brazil, Russia, India, China, South Africa
  2. (b) Britain, Russia, India, China, South Korea
  3. (c) Brazil, Romania, Indonesia, China, Singapore
  4. (d) Belgium, Russia, Italy, Canada, Spain
Answer & solution

Answer: (a) Brazil, Russia, India, China, South Africa

Correct Answer: Option 1 – Brazil, Russia, India, China, South Africa
BRICS is an acronym for the association of five major emerging economies: Brazil, Russia, India, China, and South Africa. South Africa joined in 2010, completing the group. BRICS nations represent about 41% of the world's population and 24% of global GDP. (Note: In 2024, the group expanded to BRICS+ with new members including Saudi Arabia, UAE, Egypt, Ethiopia, Iran, and Argentina.)
Option 2 (Britain, Russia, India, China, South Korea): Britain and South Korea are not BRICS members.
Option 3 (Brazil, Romania, Indonesia, China, Singapore): Romania, Indonesia, and Singapore are not BRICS members.
Option 4 (Belgium, Russia, Italy, Canada, Spain): These are not BRICS nations; Canada, Italy, Belgium, and Spain are G7/EU members.
SSC Selection Post 2025 (Phase XIII) – 24 July 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q159. How does the IMEC Alliance impact global supply chains?

  1. (a) Disrupts existing supply chains
  2. (b) Strengthens supply chain efficiency
  3. (c) Limits trade to specific regions
  4. (d) Reduces supply chain reliability
Answer & solution

Answer: (b) Strengthens supply chain efficiency

Correct Answer: Option 2 – Strengthens supply chain efficiency
The India-Middle East-Europe Economic Corridor (IMEC), announced at the G20 Summit in New Delhi (September 2023), is designed to strengthen global supply chain efficiency by creating a new multi-modal connectivity corridor linking India, the UAE, Saudi Arabia, Jordan, Israel, and Europe. It involves rail, shipping, and digital connectivity that reduces transit time and costs compared to existing routes.
Option 1 (Disrupts supply chains): IMEC aims to enhance, not disrupt, supply chains.
Option 3 (Limits trade to specific regions): IMEC broadens trade connectivity across regions.
Option 4 (Reduces reliability): IMEC increases supply chain reliability by offering an alternative to the Suez Canal route.
SSC Selection Post 2025 (Phase XIII) – 24 July 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q160. How does the BRICS Vaccine R&D Center support vaccine affordability?

  1. (a) By reducing production costs through joint research
  2. (b) By limiting vaccine exports
  3. (c) By increasing patent restrictions
  4. (d) By focusing only on high-income countries
Answer & solution

Answer: (a) By reducing production costs through joint research

Correct Answer: Option 1 – By reducing production costs through joint research
The BRICS Vaccine R&D Center, established to enhance vaccine research and development among BRICS nations, supports vaccine affordability primarily by pooling resources and expertise through joint research, which reduces duplication of efforts and lowers per-unit production costs. Collaborative R&D also accelerates development timelines and enables technology transfer to make vaccines more accessible in BRICS and developing nations.
Option 2 (Limiting vaccine exports): Limiting exports would reduce access, not improve affordability.
Option 3 (Increasing patent restrictions): Greater patent restrictions increase costs; the BRICS approach seeks to reduce such barriers.
Option 4 (Focusing only on high-income countries): BRICS vaccine initiatives specifically target developing nations and low/middle-income populations.
SSC Selection Post 2025 (Phase XIII) – 24 July 2025 Shift 2 · Economic groupings (BRICS, G20, ASEAN)

Q161. What is the ultimate goal of the BRICS Think Tank Council?

  1. (a) To establish a common currency for BRICS nations
  2. (b) To provide research-based insights for shaping BRICS Summit discussions and policies
  3. (c) To regulate trade policies among BRICS countries
  4. (d) To manage cultural exchanges among BRICS nations
Answer & solution

Answer: (b) To provide research-based insights for shaping BRICS Summit discussions and policies

Correct Answer: Option 2 – To provide research-based insights for shaping BRICS Summit discussions and policies
The BRICS Think Tank Council (BTTC) is an academic and research platform that brings together think tanks and research institutions from BRICS countries. Its ultimate goal is to provide evidence-based, research-driven policy insights and recommendations to inform discussions at BRICS Summits and shape the grouping's collective policy agenda.
Option 1 (Common currency): Discussions on alternatives to the US dollar exist, but establishing a common currency is not the mandate of the Think Tank Council.
Option 3 (Regulate trade policies): Trade policy regulation is handled through bilateral agreements and the BRICS framework; not the Think Tank Council's role.
Option 4 (Cultural exchanges): Cultural exchanges are handled by other BRICS forums; the Think Tank Council is focused on research and policy.
SSC Selection Post 2025 (Phase XIII) – 24 July 2025 Shift 3 · Foreign exchange reserves and exchange rates

Q162. Why was the rupee devalued in 1991?

  1. (a) To make imports cheaper
  2. (b) To increase foreign aid
  3. (c) To boost exports and attract foreign exchange
  4. (d) To reduce inflation
Answer & solution

Answer: (c) To boost exports and attract foreign exchange

Correct Answer: Option 3 – To boost exports and attract foreign exchange
In July 1991, India devalued the rupee by about 18-19% in two stages as part of the economic reforms and IMF/World Bank-supported stabilization package. India was facing a severe Balance of Payments ( BoP ) crisis with foreign exchange reserves down to just 2 weeks of imports. The devaluation was intended to: (1) make Indian exports cheaper and more competitive internationally, (2) attract more foreign exchange earnings, (3) correct the overvalued exchange rate.
Option 1 (Make imports cheaper): Devaluation does the OPPOSITE — it makes imports MORE expensive (since you need more rupees to buy the same foreign currency).
Option 2 (Increase foreign aid): Devaluation is not a mechanism to attract foreign aid; it is a trade and exchange rate policy tool.
Option 4 (Reduce inflation): Devaluation actually tends to INCREASE inflation (imported inflation) as import costs rise; it was not done to reduce inflation.
RRB NTPC GL CBT-1 2024-25 – 23 June 2025 Shift 3 · WTO

Q163. The PM-KISAN scheme launched by the Central Government falls under which category of boxes under the WTO’s Agreement on Agriculture?

  1. (a) Green box
  2. (b) Blue box
  3. (c) Amber box
  4. (d) Red box
Answer & solution

Answer: (a) Green box

RRB NTPC GL CBT-1 2024-25 – 19 June 2025 Shift 1 · FDI, FPI and FEMA

Q164. Which of the following could be the factors that led Foreign Portfolio Investors (FPIs) to withdraw significant funds from Indian equities according to the Economic Survey 2024-25?
1. Slowing earnings growth
2. High valuations
3. Rising geopolitical tensions

  1. (a) All 1, 2, and 3
  2. (b) 2 and 3 only
  3. (c) 1 and 2 only
  4. (d) 1 and 3 only
Answer & solution

Answer: (a) All 1, 2, and 3

RRB NTPC GL CBT-1 2024-25 – 19 June 2025 Shift 2 · FDI, FPI and FEMA

Q165. Foreign Direct Investment (FDI) is a key aspect of globalisation. What is a major benefit of FDI for developing countries like India?

  1. (a) Access to technology and employment
  2. (b) Currency depreciation
  3. (c) Increase in taxation
  4. (d) Trade deficits
Answer & solution

Answer: (a) Access to technology and employment

RRB NTPC GL CBT-1 2024-25 – 18 June 2025 Shift 1 · Balance of payments and current account

Q166. What was India’s external debt to GDP ratio at the end of September 2024?

  1. (a) 24.6%
  2. (b) 19.4%
  3. (c) 13.4%
  4. (d) 34%
Answer & solution

Answer: (b) 19.4%

RRB NTPC GL CBT-1 2024-25 – 17 June 2025 Shift 2 · FDI, FPI and FEMA

Q167. Which of the following are the key factors that are favourable for India for making it a key destination for foreign investments?1. India’s robust economic fundamentals2. Ongoing structural reforms3. Decreasing consumer market position

  1. (a) 2 and 3 only
  2. (b) 1 and 3 only
  3. (c) All 1, 2, and 3
  4. (d) 1 and 2 only
Answer & solution

Answer: (d) 1 and 2 only

RRB NTPC GL CBT-1 2024-25 – 16 June 2025 Shift 2 · WTO

Q168. Post 1991 economic reforms, India engaged more actively in global trade agreements. Which organisation did India join in 1995 to boost global trade integration?

  1. (a) UNDP
  2. (b) World Bank
  3. (c) WTO
  4. (d) IMF
Answer & solution

Answer: (c) WTO

RRB NTPC GL CBT-1 2024-25 – 16 June 2025 Shift 1 · Foreign trade policy and EXIM

Q169. Anti-dumping and anti-subsidies & countervailing measures in India are administered by which Ministry?

  1. (a) Ministry of Home Affairs
  2. (b) Ministry of Commerce and Industry
  3. (c) Ministry of External Affairs
  4. (d) Ministry of Finance
Answer & solution

Answer: (b) Ministry of Commerce and Industry

RRB NTPC GL CBT-1 2024-25 – 14 June 2025 Shift 2 · Foreign exchange reserves and exchange rates

Q170. The exchange rate system was reformed to reflect market conditions. What type of exchange rate regime did India adopt post-1991?

  1. (a) Gold standard
  2. (b) Floating exchange rate
  3. (c) Managed floating exchange rate
  4. (d) Fixed exchange rate
Answer & solution

Answer: (c) Managed floating exchange rate

RRB NTPC GL CBT-1 2024-25 – 14 June 2025 Shift 1 · FDI, FPI and FEMA

Q171. Which sector is the largest recipient of foreign direct investment in the first half of financial year 2024-25?

  1. (a) Agricultural sector
  2. (b) Service sector
  3. (c) Manufacturing sector
  4. (d) Mining sector
Answer & solution

Answer: (b) Service sector

RRB NTPC GL CBT-1 2024-25 – 11 June 2025 Shift 3 · WTO

Q172. Which of the following is/are correct with respect to the World Trade Organization (WTO)?
1. WTO agreements cover trade in goods as well as services to facilitate international trade.
2. It aims to remove tariff as well as non-tariff barriers and provide greater market access to all member countries.
3. India has kept its commitments towards liberalisation of trade, made in the WTO, by removing quantitative restrictions on imports and reducing tariff rates.

  1. (a) Only 2 and 3
  2. (b) Only 1 and 3
  3. (c) Only 1 and 2
  4. (d) 1, 2 and 3
Answer & solution

Answer: (d) 1, 2 and 3

RRB NTPC GL CBT-1 2024-25 – 10 June 2025 Shift 2 · WTO

Q173. In which year was the World Trade Organization, which has promoted globalisation across nations, established?

  1. (a) 1995
  2. (b) 1991
  3. (c) 2000
  4. (d) 2001
Answer & solution

Answer: (a) 1995

RRB JE CBT-1 2024-25 – 16 December 2024 Shift 1 · Foreign trade policy and EXIM

Q174. Every year, Foreign Trade Policy has been declared by which ministry of the Government of India?

  1. (a) Ministry of Home Affairs
  2. (b) Ministry of Information
  3. (c) Ministry of Commerce and Industry
  4. (d) Ministry of External Affairs
Answer & solution

Answer: (c) Ministry of Commerce and Industry

Answer: Option 3 — Ministry of Commerce and Industry
India's Foreign Trade Policy (FTP) is framed and announced by the Ministry of Commerce and Industry through its Directorate General of Foreign Trade (DGFT).
Revision note — Foreign Trade Policy of India
• FTP is notified under the Foreign Trade (Development and Regulation) Act, 1992.
• DGFT, headquartered in New Delhi, frames and implements the FTP; it was created in 1991 from the office of the Chief Controller of Imports and Exports.
• FTP 2023 came into force on 1 April 2023; unlike the earlier five-year policies (e.g. FTP 2015–20) it has no end date and is updated as needed.
• FTP 2023 targets exports of USD 2 trillion by 2030 and promotes rupee trade settlement.
• Export schemes under the FTP: RoDTEP (replaced MEIS from 1 January 2021), EPCG, Advance Authorisation.
• Anti-dumping investigations are run by the Directorate General of Trade Remedies (DGTR), also under the Commerce Ministry.
Do not mix these up
• Ministry of Commerce vs Ministry of External Affairs — trade policy is Commerce; diplomacy and foreign relations are External Affairs.
Also asked from this topic: the body that formulates India's Foreign Trade Policy (DGFT); the year DGFT was created (1991); the ministry that handles anti-dumping investigations (Ministry of Commerce and Industry).
12

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