India's Trade Policy: Checkpoint 1

Quick checkpoint - five questions on India's trade pattern, liberalisation, trade deals, RCEP and the 2025 US tariffs.

Quick checkpoint - five questions on India’s trade pattern, liberalisation, trade deals, RCEP and the 2025 US tariffs.

Question 1 of 5 How does India usually balance its large goods trade deficit?

By printing more rupees With a services surplus and large remittances By banning all imports It never has a goods deficit

Services exports and money sent home by Indians abroad offset much of the goods deficit.

Question 2 of 5 What happened to India's trade policy after the 1991 crisis?

Tariffs rose sharply Import licences were dismantled and tariffs were cut All trade was banned The rupee was fixed permanently

The reforms devalued the rupee, removed many licences and steadily cut tariffs.

Question 3 of 5 Which of these is a trade agreement India signed from 2022 onwards?

NAFTA The India-UAE CEPA RCEP The Marshall Plan

India signed new deals with the UAE, Australia, EFTA and the UK.

Question 4 of 5 What was India's main worry about joining RCEP?

Too few member countries A flood of imports, especially from China Losing access to US markets Oil prices

India already had a large trade deficit with China and feared it would grow.

Question 5 of 5 Which Indian sectors were hit hardest by the 2025 US tariffs?

Labour-intensive sectors such as textiles, gems and shrimp Only pharmaceuticals Only software services None

Thin margins and competitors facing lower tariffs made these sectors vulnerable.

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