RAS question
Under the India-US trade agreement, India committed to purchasing how much worth of US goods over five years?
Correct answer: (C) USD 500 billion.
Under the India-US trade agreement, India intended to purchase USD 500 billion worth of US goods over the next five years.
Explanation
India’s commitment was USD 500 billion over five years. New India Samachar, in its India-USA Interim Trade Agreement section, says India intended to buy USD 500 billion worth of energy products, aircraft and aircraft components, precious metals, technology products, and coking coal from the United States over the next five years. This figure was the purchase-side commitment in the agreement. The agreement belonged to a wider trade package in which the United States would apply an 18 percent reciprocal tariff rate on goods manufactured in India, a rate described as lower than those faced by several competing Asian exporters.
Why the other options are wrong
- (A) USD 200 billion understates the five-year purchase commitment of USD 500 billion.
- (B) USD 350 billion was not India’s purchase commitment under the agreement; the commitment was USD 500 billion.
- (D) USD 750 billion overstates India’s five-year purchase commitment of USD 500 billion.
Concept
This tests current trade policy and bilateral economic agreements, a recurring RAS Indian Economy area because such deals link tariffs, market access, and strategic imports. The question turns on remembering the exact commitment figure, not merely the existence of the India-US trade agreement.