UPSC Prelims Practice Questions — French wine, spirits exports lose fizz for third year as trade tensions show impact

Q1. According to the FEVS 2025 annual export data, French wine and spirits have slipped from being France's second-largest export sector to the third position. Which one of the following is now reported as France's largest export sector?

  • A. Aerospace
  • B. Cosmetics
  • C. Luxury fashion and leather goods
  • D. Pharmaceuticals

Q2. By approximately what percentage did the value of French wine and spirits exports to the United States decline in 2025, as per FEVS data?

  • A. 8%
  • B. 17%
  • C. 21%
  • D. 33%

Q3. The Free Trade Agreement between the European Union and India, which inter alia provides for a phased reduction of India's aggregate import tariff on spirits from 150% down to 40%, was concluded in which month and year?

  • A. December 2025
  • B. January 2026
  • C. March 2026
  • D. July 2025

Q4. Consider the following statements regarding India's tariff commitments on alcoholic beverages under the EU-India Free Trade Agreement concluded in January 2026: 1. India's import tariff on whisky is to be reduced from 150% to 75% on the first day of entry into force and to 40% by the tenth year. 2. India's import tariff on spirits such as vodka, rum and gin is to be reduced to 40%. 3. India's import tariff on beer is to be reduced to 50%. 4. India's import tariff on all categories of wine is to be eliminated entirely (reduced to 0%) on the first day of entry into force. Which of the statements given above is/are correct?

  1. India's import tariff on whisky is to be reduced from 150% to 75% on the first day of entry into force and to 40% by the tenth year.
  2. India's import tariff on spirits such as vodka, rum and gin is to be reduced to 40%.
  3. India's import tariff on beer is to be reduced to 50%.
  4. India's import tariff on all categories of wine is to be eliminated entirely (reduced to 0%) on the first day of entry into force.
  • A. 1, 2 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2, 3 and 4

Q5. Which one of the following is the nodal Indian ministry that led the negotiation of the EU-India Free Trade Agreement (including its wine and spirits tariff schedule) concluded in January 2026?

  • A. Ministry of External Affairs
  • B. Ministry of Finance (Department of Revenue)
  • C. Ministry of Commerce and Industry (Department of Commerce)
  • D. Ministry of Food Processing Industries