MCQ Test: Indian Economy Navigates Trade Deficit Amidst Robust Growth and Strategic Trade Deals

1. What was the primary reason cited for the significant widening of India's merchandise trade deficit in October 2025?

A) Contraction in services exports B) Surge in gold imports C) Decline in agricultural output D) Increased crude oil prices

2. By approximately what percentage did India's gold imports increase in October 2025 compared to the same period last year?

A) 50% B) 100% C) 200% D) 300%

3. Which of the following was NOT cited as a reason for the decline in India's merchandise exports in October 2025?

A) High base effect from the previous year B) Global economic slowdown C) Impact of US tariffs on Indian products D) Increased domestic consumption

4. The widening of India's current account deficit (CAD) in Q3 FY26 is primarily anticipated due to which factor?

A) Increased services imports B) Cooling of gold imports C) Continued surge in gold imports D) Higher foreign investment outflow

5. What is predominantly driving India's GDP growth in Q2 FY26, as per the provided information?

A) Strong growth in agriculture B) Significant expansion in the services sector C) A pick-up in industrial activity D) Increased government spending on social welfare

6. What significant progress has been made regarding the bilateral trade agreement between India and the United States?

A) A new free trade agreement has been signed B) Discussions for the first phase are nearing closure C) All reciprocal tariffs have been removed D) India has agreed to import more US agricultural products

7. India has secured its first-ever deal to import Liquefied Petroleum Gas (LPG) from which country to bolster its energy security?

A) Russia B) Saudi Arabia C) United States D) Qatar

8. The new LPG import deal with the US will account for approximately what percentage of India's total LPG sourcing?

A) 5% B) 10% C) 15% D) 20%

9. According to Minister MSME Kondapalli Srinivas, what is crucial for boosting India's export competitiveness, especially for MSMEs?

A) Reducing labor costs B) Increasing import duties C) Standardization and certification D) Focusing solely on the domestic market

10. What is the Securities and Exchange Board of India (Sebi) aiming to achieve regarding unique investors in the country within the next three to five years?

A) Halve their number B) Maintain the current number C) Double their number D) Introduce new investment products

11. What did Prime Minister Narendra Modi urge states to foster to promote development?

A) Increased subsidies for farmers B) A competitive environment for investment and ease of doing business C) Centralized decision-making D) Greater focus on public sector enterprises

12. Despite global uncertainties and external headwinds, what characteristic does the Indian economy continue to exhibit?

A) Volatility and instability B) Exceptional resilience and stability C) Dependence on external aid D) Stagnant growth

13. Which Indian company is planning to establish a 1 GW AI data center in Andhra Pradesh?

A) Tata Consultancy Services B) Infosys C) Reliance Industries D) Wipro

ALL TN Comp Exams Prep

Indian Economy Navigates Trade Deficit Amidst Robust Growth and Strategic Trade Deals

Your Score: 0 / 0

1. What was the primary reason cited for the significant widening of India's merchandise trade deficit in October 2025?

2. By approximately what percentage did India's gold imports increase in October 2025 compared to the same period last year?

3. Which of the following was NOT cited as a reason for the decline in India's merchandise exports in October 2025?

4. The widening of India's current account deficit (CAD) in Q3 FY26 is primarily anticipated due to which factor?

5. What is predominantly driving India's GDP growth in Q2 FY26, as per the provided information?

6. What significant progress has been made regarding the bilateral trade agreement between India and the United States?

7. India has secured its first-ever deal to import Liquefied Petroleum Gas (LPG) from which country to bolster its energy security?

8. The new LPG import deal with the US will account for approximately what percentage of India's total LPG sourcing?

9. According to Minister MSME Kondapalli Srinivas, what is crucial for boosting India's export competitiveness, especially for MSMEs?

10. What is the Securities and Exchange Board of India (Sebi) aiming to achieve regarding unique investors in the country within the next three to five years?

11. What did Prime Minister Narendra Modi urge states to foster to promote development?

12. Despite global uncertainties and external headwinds, what characteristic does the Indian economy continue to exhibit?

13. Which Indian company is planning to establish a 1 GW AI data center in Andhra Pradesh?

Indian Economy Navigates Trade Deficit Amidst Robust Growth and Strategic Trade Deals

Your Score: 0 / 0

1. What was the primary reason cited for the significant widening of India's merchandise trade deficit in October 2025?

2. By approximately what percentage did India's gold imports increase in October 2025 compared to the same period last year?

3. Which of the following was NOT cited as a reason for the decline in India's merchandise exports in October 2025?

4. The widening of India's current account deficit (CAD) in Q3 FY26 is primarily anticipated due to which factor?

5. What is predominantly driving India's GDP growth in Q2 FY26, as per the provided information?

6. What significant progress has been made regarding the bilateral trade agreement between India and the United States?

7. India has secured its first-ever deal to import Liquefied Petroleum Gas (LPG) from which country to bolster its energy security?

8. The new LPG import deal with the US will account for approximately what percentage of India's total LPG sourcing?

9. According to Minister MSME Kondapalli Srinivas, what is crucial for boosting India's export competitiveness, especially for MSMEs?

10. What is the Securities and Exchange Board of India (Sebi) aiming to achieve regarding unique investors in the country within the next three to five years?

11. What did Prime Minister Narendra Modi urge states to foster to promote development?

12. Despite global uncertainties and external headwinds, what characteristic does the Indian economy continue to exhibit?

13. Which Indian company is planning to establish a 1 GW AI data center in Andhra Pradesh?

📢 Share this page