Question 1

The US maintains high punitive tariffs on all Indian imports linked to Russian oil.

Accepted Answer

The February 2026 India-US trade deal officially lifted the additional punitive duties linked to India's earlier Russian oil purchases.

Question 2

India and the US have signed a Comprehensive Free Trade Agreement (FTA) following the tariff reductions.

Accepted Answer

They signed a targeted India-US Trade Deal embedded within a critical minerals framework, not a full FTA.

Question 3

Consider the following statements regarding the February 2026 India-US Critical Minerals Ministerial and Trade Deal:
1. The Minerals Security Partnership (MSP) was originally initiated by India in 2022 to secure rare earth elements.
2. The agreement resulted in the lifting of US punitive duties related to India's earlier Russian oil purchases.
3. The ministerial resulted in the official restoration of India's Generalized System of Preferences (GSP) status.
How many of the above statements are correct?

Accepted Answer

(a) Only one — Statement 1 is incorrect because the MSP was initiated by the United States in 2022 (India joined in 2023). Statement 2 is correct as the 2026 trade deal explicitly lifted punitive duties linked to Russian oil purchases. Statement 3 is incorrect because India's GSP status, revoked in 2019, was not restored in this specific deal despite the reduction in reciprocal tariffs.

Question 4

Match List I (Critical Minerals prioritized in bilateral forums) with List II (Primary Global Producer/Reserve location context) based on global supply chains:
List I:
A. Cobalt
B. Lithium
C. Nickel
D. Rare Earth Elements

List II:
1. Indonesia
2. Democratic Republic of Congo
3. China
4. Australia/Chile

Select the correct answer using the code given below:

Accepted Answer

(a) A-2, B-4, C-1, D-3 — Cobalt is predominantly mined in the Democratic Republic of Congo (A-2). Lithium's major producers are Australia and Chile (the 'Lithium Triangle' also includes Argentina and Bolivia) (B-4). Nickel has seen massive production expansion in Indonesia (C-1). Rare Earth Elements are overwhelmingly processed and produced by China (D-3). This spatial distribution is why the US and India are forming partnerships like the MSP.

Question 5

Assertion (A): The US agreed to lift punitive duties on India's past Russian oil purchases during the 2026 Critical Minerals Ministerial.
Reason (R): The US aimed to leverage trade concessions to deepen India's integration into the Minerals Security Partnership (MSP) and secure a China-independent mineral supply chain.
Select the correct answer:

Accepted Answer

(a) Both A and R are true and R is the correct explanation of A — Assertion (A) is true as the February 2026 deal lifted these specific punitive duties. Reason (R) is also true and directly explains (A). The US strategically embedded the trade deal within the Critical Minerals Ministerial to offer a 'grand bargain' - relieving trade and energy pressure on India in exchange for tighter alignment on critical technology and mineral supply chains away from China.

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