Major Trade Partners Practice Questions
20 free Major Trade Partners practice questions for the Static GK. Tap an option to answer — you get instant feedback, the correct answer, and a detailed explanation for every question.
As of the fiscal year 2023-24, which country emerged as India's largest overall trading partner?
- A United States
- B China
- C United Arab Emirates
- D Saudi Arabia
Correct answer: United States
The United States has consistently remained India's top trading partner in recent years, with bilateral trade involving high volumes of both goods and services. This partnership is unique as India maintains a significant trade surplus with the U.S.
With which country does India share its largest trade deficit, primarily due to the import of electronic goods and machinery?
- A Russia
- B United Arab Emirates
- C China
- D Iraq
Correct answer: China
India has its largest trade deficit with China. This is driven by heavy reliance on Chinese imports such as electronic components, active pharmaceutical ingredients (APIs), and specialized machinery.
Which Middle Eastern nation is India's third-largest trading partner and a key destination for Indian jewelry and refined petroleum?
- A Kingdom of Saudi Arabia
- B Qatar
- C Kuwait
- D United Arab Emirates
Correct answer: United Arab Emirates
The UAE is India's third-largest trading partner. The relationship was further bolstered by the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022, which reduced tariffs on various goods.
India's trade with which country saw a massive surge in 2022-23 and 2023-24, primarily due to increased crude oil imports?
- A Russia
- B Iran
- C Venezuela
- D Brazil
Correct answer: Russia
Following global geopolitical shifts, Russia moved into the top five of India's trading partners. India significantly increased its purchase of discounted Russian crude oil to ensure energy security.
Which of the following countries is a major trading partner of India and also the largest exporter of palm oil to the Indian market?
- A Indonesia
- B Vietnam
- C Thailand
- D Philippines
Correct answer: Indonesia
Indonesia is a vital trading partner for India in the ASEAN region. It serves as the primary source of India's palm oil imports, which is essential for India's domestic food industry.
The 'Comprehensive Economic Cooperation and Trade Agreement' (ECTA), which significantly boosted bilateral trade in 2023, was signed between India and which country?
- A Australia
- B United Kingdom
- C Canada
- D New Zealand
Correct answer: Australia
The India-Australia ECTA came into force in late 2022. It provides duty-free access for over 96% of Indian exports to Australia and significantly benefits sectors like textiles, leather, and jewelry.
Which European nation is India's largest trading partner within the European Union (EU)?
- A France
- B Italy
- C Netherlands
- D Germany
Correct answer: Germany
Germany remains India's most significant trading partner in the EU. Bilateral trade is focused on sectors like automobiles, machinery, chemicals, and pharmaceuticals.
India is one of the world's largest exporters of generic medicines. Which country is the largest destination for Indian pharmaceutical exports?
- A United Kingdom
- B South Africa
- C Nigeria
- D United States
Correct answer: United States
The United States is the biggest market for Indian pharmaceuticals, accounting for nearly 30% of India's total drug exports. Many Indian companies have manufacturing facilities that are FDA-approved to serve this market.
In the fiscal year 2023-24, which country was the fourth largest trading partner of India?
- A China
- B Russia
- C Saudi Arabia
- D Switzerland
Correct answer: Russia
Russia rose to become India's fourth-largest trading partner due to the high value and volume of crude oil imports. This represented a significant shift from previous years when it was not in the top ten.
Which country serves as a major transshipment hub and is India's largest trading partner among the ASEAN nations?
- A Malaysia
- B Singapore
- C Philippines
- D Thailand
Correct answer: Singapore
Singapore is India's largest trading partner in the ASEAN region. It acts as a financial hub and a major source of Foreign Direct Investment (FDI) into India, alongside robust merchandise trade.
India's 'IT and Business Services' exports are primarily directed toward which region?
- A North America
- B East Asia
- C Central Asia
- D Western Europe
Correct answer: North America
North America, specifically the United States, accounts for the lion's share (over 60%) of India's software and IT-enabled services exports. This is a major contributor to India's foreign exchange earnings.
Which country is a leading partner in the diamond trade, where rough diamonds are imported to India for cutting and polishing and then re-exported?
- A Belgium
- B South Africa
- C Israel
- D Russia
Correct answer: Belgium
Belgium, particularly the city of Antwerp, is a critical trade partner for India in the gems and jewelry sector. India imports a vast amount of rough diamonds from Belgium and exports finished, polished diamonds back.
India has signed a Free Trade Agreement (FTA) with which grouping to facilitate trade with countries like Iceland, Liechtenstein, Norway, and Switzerland?
- A Mercosur
- B EFTA
- C GCC
- D CARICOM
Correct answer: EFTA
India signed a Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) in 2024. This agreement aims to attract $100 billion in investment into India over 15 years.
Which neighbor of India is a major trade partner where India typically maintains a massive trade surplus and provides electricity as an export?
- A Pakistan
- B China
- C Nepal
- D Afghanistan
Correct answer: Nepal
Nepal is heavily dependent on India for essential commodities, fuel, and manufactured goods. India is Nepal's largest trading partner and a major provider of electricity and transit facilities.
Which country is the largest source of 'Solar Cell and Module' imports for India's renewable energy sector?
- A USA
- B Germany
- C China
- D Japan
Correct answer: China
Despite efforts to boost domestic manufacturing through PLI schemes, India remains highly dependent on China for solar cells and modules to meet its ambitious renewable energy targets.
India's trade with African nations is led by which country, which is also a significant supplier of crude oil and cashews?
- A South Africa
- B Nigeria
- C Egypt
- D Ethiopia
Correct answer: Nigeria
Nigeria is one of India's largest trading partners in Africa. The trade is dominated by Indian imports of Nigerian crude oil, while India exports pharmaceuticals, vehicles, and machinery.
Which of the following is India's largest export item in terms of value in recent years?
- A Rice
- B Marine Products
- C Engineering Goods
- D Refined Petroleum
Correct answer: Refined Petroleum
Refined petroleum products are India's top export. India has a massive refining capacity and exports processed fuels to various regions, including Europe and the Middle East.
In 2024, India and which trade partner discussed a settlement system in local currencies (Rupee and Dirham) to reduce transaction costs?
- A UAE
- B Russia
- C Iran
- D USA
Correct answer: UAE
India and the UAE have operationalized a Local Currency Settlement System (LCSS). This allows exporters and importers to invoice and pay in their respective domestic currencies, promoting the internationalization of the Rupee.
Which country is a major supplier of coking coal to India, essential for the domestic steel industry?
- A Australia
- B Brazil
- C South Africa
- D Mexico
Correct answer: Australia
Australia is the primary source of coking coal for Indian steel plants. This high-quality coal is a critical raw material for the blast furnaces used in large-scale steel production.
Which organization monitors and regulates the rules of trade between India and its global partners to ensure fair practices?
- A IMF
- B World Bank
- C WTO
- D UNCTAD
Correct answer: WTO
The World Trade Organization (WTO) is the global international organization dealing with the rules of trade between nations. India is a founding member and actively participates in its dispute settlement mechanisms.