UPSC Prelims Practice Questions — EU carmakers face tough India market post trade deal

Question 1

Which one of the following ministries/departments of the Government of India is the lead negotiating authority on India's side for the India–European Union Free Trade Agreement concluded in January 2026?

Accepted Answer

Department of Commerce, Ministry of Commerce & Industry

Answer

Ministry of External Affairs

Answer

Department of Heavy Industry, Ministry of Heavy Industries

Answer

Department of Revenue, Ministry of Finance

Question 2

In the context of India's automobile import-tariff regime that the India–EU FTA seeks to liberalise, the term 'Completely Built-Up (CBU) unit' refers to:

Accepted Answer

A vehicle imported as a fully assembled unit, ready for sale without further assembly in India

Answer

A vehicle imported as a set of pre-painted body panels and a powertrain, requiring only final fitment in India

Answer

A vehicle imported in fully unassembled component form, requiring complete assembly and painting in India

Answer

A vehicle manufactured wholly in India by an original equipment manufacturer using imported tooling

Question 3

Which one of the following is currently the single largest Indian-based exporter of passenger vehicles to the European Union, accounting for over half of such exports as of 2025–26?

Accepted Answer

Maruti Suzuki India

Answer

Tata Motors

Answer

Hyundai Motor India

Answer

Mahindra & Mahindra

Question 4

Under the India–EU Free Trade Agreement concluded in January 2026, what is the initial annual quota (in units) of electric vehicles from the EU that will be eligible for the reduced-tariff regime?

Accepted Answer

20,000

Answer

10,000

Answer

34,000

Answer

90,000

UPSC Prelims Practice Questions — EU carmakers face tough India market post trade deal

Q1. Which one of the following ministries/departments of the Government of India is the lead negotiating authority on India's side for the India–European Union Free Trade Agreement concluded in January 2026?

Q2. In the context of India's automobile import-tariff regime that the India–EU FTA seeks to liberalise, the term 'Completely Built-Up (CBU) unit' refers to:

Q3. Which one of the following is currently the single largest Indian-based exporter of passenger vehicles to the European Union, accounting for over half of such exports as of 2025–26?

Q4. Under the India–EU Free Trade Agreement concluded in January 2026, what is the initial annual quota (in units) of electric vehicles from the EU that will be eligible for the reduced-tariff regime?