1. With reference to the India–U.S. Interim Trade Agreement (2026), consider the following statements:
The U.S. announced key provisions of the deal before India officially responded.
India’s Russian oil imports increased after tariff negotiations.
India agreed to zero tariffs in several sectors while U.S. tariffs remained on Indian goods.
Which of the statements are correct?
A) 1 and 3 only
B) 2 and 3 only
C) 1 only
D) 1, 2 and 3
Answer: A
Explanation:
The U.S. unilaterally announced details of the interim deal. India’s Russian oil imports actually fell from 40% (2024) to 25% (Dec 2025). India agreed to zero tariffs in some sectors, while U.S. tariffs continued at around 18%, raising fairness concerns.
2. The major concern regarding India’s strategic autonomy in the trade deal arises because:
A) India is joining NATO
B) U.S. linked tariff relief to foreign policy alignment
C) India imposed sanctions on Russia
D) BRICS suspended India
Answer: B
Explanation:
The U.S. linked tariff concessions to India reducing Russian oil imports and aligning with U.S. national security positions. This raises questions about multi-alignment. It may weaken India’s independent foreign policy stance.
3. Under the new Labour Codes, wages must constitute at least:
A) 40% of total remuneration
B) 45% of total remuneration
C) 50% of total remuneration
D) 60% of total remuneration
Answer: C
Explanation:
The Labour Codes mandate that wages form at least 50% of total remuneration. This prevents companies from reducing PF and gratuity contributions. It ensures higher social security benefits and long-term income protection for workers.
4. Fixed-term employees under the new Labour Codes are eligible for gratuity after:
A) 5 years
B) 3 years
C) 2 years
D) 1 year
Answer: D
Explanation:
Earlier gratuity required 5 years of service. The new reform allows fixed-term employees to receive gratuity after just one year. This significantly benefits contract workers and strengthens financial inclusion.
5. The new CPI series has changed its base year to:
A) 2011–12
B) 2015–16
C) 2022–23
D) 2024
Answer: D
Explanation:
The government replaced the 2012 base year CPI with a new base year of 2024. It reflects updated consumption patterns from the Household Consumption Expenditure Survey 2023–24. This improves inflation measurement accuracy.
6. In the new CPI series, the weight of food & beverages has:
A) Increased significantly
B) Remained unchanged
C) Reduced from 45.86% to 36.75%
D) Been removed completely
Answer: C
Explanation:
Food’s weight was reduced from 45.86% to 36.75%. This lowers volatility in CPI as food prices fluctuate frequently. It results in more stable inflation trends for policymaking.
7. Which institution uses CPI as the primary inflation indicator?
A) NITI Aayog
B) RBI
C) SEBI
D) Finance Commission
Answer: B
Explanation:
The Reserve Bank of India uses CPI for monetary policy decisions. The Monetary Policy Committee bases interest rate decisions on CPI inflation. It reflects retail-level consumer prices.
8. WPI differs from CPI because:
A) WPI includes services
B) WPI measures retail prices
C) WPI measures wholesale-level prices
D) WPI is used for household expenditure
Answer: C
Explanation:
WPI measures price changes at the wholesale or producer level. It does not reflect retail consumer prices. CPI, on the other hand, captures cost of living for households.
9. Complaints against judges are handled primarily through:
A) Parliamentary Committee
B) CBI
C) In-house procedure under CJI
D) Election Commission
Answer: C
Explanation:
The in-house procedure authorises the Chief Justice of India and High Court Chief Justices to receive and act on complaints. However, transparency regarding follow-up action remains limited.
10. Spectrum, as clarified by the Supreme Court, is:
A) Private property of telecom companies
B) A tradable commercial asset
C) A scarce natural resource vested in the Union
D) Owned by TRAI
Answer: C
Explanation:
The Court held that spectrum is a natural resource owned by the people and vested in the Union government. Telecom companies only receive a revocable licence to use it. It cannot be treated as an asset under IBC.
11. Spectrum cannot be listed as an asset under:
A) Companies Act
B) GST Act
C) Insolvency and Bankruptcy Code
D) SEBI Act
Answer: C
Explanation:
The Supreme Court clarified that spectrum cannot be treated as an asset for insolvency resolution. It remains under sovereign control and cannot be sold in liquidation proceedings.
12. Telecom spectrum is primarily allocated through:
A) Lottery
B) Administrative allocation
C) Auctions
D) Judicial order
Answer: C
Explanation:
Spectrum is allocated via auctions conducted by the government. This ensures transparency and maximises public revenue. It is subject to licence conditions and statutory rules.
13. The India AI Applications Stack focuses on:
A) Exporting AI chips
B) Building supercomputers only
C) Grassroots AI applications with social impact
D) Military AI dominance
Answer: C
Explanation:
The Economic Survey emphasised AI’s social impact in healthcare, agriculture, and education. The focus is on inclusive, application-driven AI adoption rather than computing power alone.
14. Which AI tool is used for early breast cancer detection?
A) Cropin
B) Niramai
C) Qure.ai
D) Appu
Answer: B
Explanation:
Niramai uses AI-based thermal imaging for early breast cancer detection. It is portable and affordable, especially suitable for rural healthcare delivery.
15. Niqo Robotics contributes to agriculture by:
A) Crop insurance analytics
B) Soil testing satellites
C) Precision pesticide spraying
D) AI-based irrigation dams
Answer: C
Explanation:
Niqo Robotics develops precision spraying robots. These reduce pesticide usage by 60–90%. It promotes sustainable and cost-effective farming.
16. HAPS operate approximately at what altitude?
A) 5–7 km
B) 10–12 km
C) 18–20 km
D) 35–40 km
Answer: C
Explanation:
High-Altitude Pseudo Satellites operate in the stratosphere at around 18–20 km altitude. They provide satellite-like functions at lower cost. They can stay airborne for months.
17. AS-HAPS in India is being developed by:
A) ISRO
B) DRDO
C) National Aerospace Laboratories
D) HAL
Answer: C
Explanation:
NAL, Bengaluru is leading development of AS-HAPS. A scaled prototype was tested at Challakere in Karnataka. It marks progress toward indigenous surveillance capability.
18. Under Article 85, the President:
A) Appoints Governors
B) Summons and prorogues Parliament
C) Declares Emergency
D) Appoints Judges
Answer: B
Explanation:
Article 85 empowers the President to summon and prorogue Parliament sessions. There must not be a gap of more than six months between sessions.
19. Article 112 of the Constitution relates to:
A) Joint sitting
B) Ordinances
C) Annual Financial Statement
D) Money Bill definition
Answer: C
Explanation:
Article 112 deals with the Annual Financial Statement (Union Budget). It is presented during the Budget Session and forms the basis of fiscal governance.
20. The Motion of Thanks follows:
A) Union Budget presentation
B) President’s Address
C) Finance Bill passage
D) Question Hour
Answer: B
Explanation:
After the President’s Address at the start of the Budget Session, both Houses discuss and vote on the Motion of Thanks. It reflects parliamentary endorsement of government policy priorities.