UPSC Prelims Practice Questions — India’s achievements in Free Trade Agreements for the year 2025-26

Q1. With reference to the investment commitment under the India–EFTA Trade and Economic Partnership Agreement (TEPA), consider the following: 1. The targeted USD 100 billion foreign direct investment is to be realised over a period of 15 years. 2. The agreement aims to facilitate the generation of 1 million direct jobs in India. 3. The investment commitment expressly covers foreign portfolio investment (FPI). 4. Of the USD 100 billion target, USD 50 billion is to be achieved within the first 10 years of entry into force. Which of the above is/are correctly identified?

  1. The targeted USD 100 billion foreign direct investment is to be realised over a period of 15 years.
  2. The agreement aims to facilitate the generation of 1 million direct jobs in India.
  3. The investment commitment expressly covers foreign portfolio investment (FPI).
  4. Of the USD 100 billion target, USD 50 billion is to be achieved within the first 10 years of entry into force.
  • A. 1 and 3
  • B. 2 and 4 only
  • C. 1, 2 and 4
  • D. 1, 2, 3 and 4

Q2. Consider the following statements comparing the India–EFTA TEPA with India's earlier tariff-focused trade agreements: 1. Unlike India's earlier agreements, TEPA embeds a legally binding investment commitment rather than relying only on tariff concessions. 2. TEPA is the first Indian FTA to make a target-oriented commitment on promoting investment and creation of jobs. 3. Unlike earlier agreements, the investment target under TEPA is met by counting both FDI and foreign portfolio inflows. Which of the statements given above is/are correct?

  1. Unlike India's earlier agreements, TEPA embeds a legally binding investment commitment rather than relying only on tariff concessions.
  2. TEPA is the first Indian FTA to make a target-oriented commitment on promoting investment and creation of jobs.
  3. Unlike earlier agreements, the investment target under TEPA is met by counting both FDI and foreign portfolio inflows.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. Consider the following acronym–expansion pairings used for India's trade agreements: 1. CEPA — Comprehensive Economic Partnership Agreement 2. CETA — Comprehensive Economic and Trade Agreement 3. ECTA — Economic Cooperation and Trade Agreement 4. TEPA — Trade and Economic Promotion Agreement Which of the above is/are NOT correctly matched?

  1. CEPA — Comprehensive Economic Partnership Agreement
  2. CETA — Comprehensive Economic and Trade Agreement
  3. ECTA — Economic Cooperation and Trade Agreement
  4. TEPA — Trade and Economic Promotion Agreement
  • A. 1 and 3
  • B. 2 only
  • C. 4 only
  • D. 3 and 4

Q4. With reference to the labels (nomenclature) used for India's recent trade agreements, consider the following: 1. The India–United Kingdom agreement is designated a CETA. 2. The India–Oman agreement is designated a CEPA. 3. The India–Australia agreement is designated an ECTA. 4. The India–EFTA agreement is designated a CECPA. Which of the above is/are correctly identified?

  1. The India–United Kingdom agreement is designated a CETA.
  2. The India–Oman agreement is designated a CEPA.
  3. The India–Australia agreement is designated an ECTA.
  4. The India–EFTA agreement is designated a CECPA.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q5. As of FY 2025-26, India's network of nine operational/concluded Free Trade Agreements spans how many partner countries?

  • A. 27
  • B. 32
  • C. 38
  • D. 44

Q6. Consider the following India FTA–year pairings: 1. India–Mauritius CECPA — 2021 2. India–UAE CEPA (entry into force) — 2022 3. India–EFTA TEPA (entry into force) — 2025 4. India–Oman CEPA (signing) — 2023 Which of the above is/are NOT correctly matched?

  1. India–Mauritius CECPA — 2021
  2. India–UAE CEPA (entry into force) — 2022
  3. India–EFTA TEPA (entry into force) — 2025
  4. India–Oman CEPA (signing) — 2023
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2 and 4

Q7. With reference to the India–UK Comprehensive Economic and Trade Agreement (CETA), consider the following: 1. It was signed in London on 24 July 2025. 2. The UK grants duty-free access on 99% of India's exports by value. 3. It was signed by Shri Piyush Goyal and Mr. Jonathan Reynolds. 4. It entered into force immediately and automatically on the date of its signing in July 2025. Which of the above is/are NOT correct?

  1. It was signed in London on 24 July 2025.
  2. The UK grants duty-free access on 99% of India's exports by value.
  3. It was signed by Shri Piyush Goyal and Mr. Jonathan Reynolds.
  4. It entered into force immediately and automatically on the date of its signing in July 2025.
  • A. 1 and 3
  • B. 2 only
  • C. 4 only
  • D. 3 and 4

Q8. The India–UK CETA signed on 24 July 2025 was signed, on the United Kingdom's side, by which of the following office-holders?

  • A. Jonathan Reynolds, Secretary of State for Business and Trade
  • B. Kemi Badenoch, Secretary of State for Business and Trade
  • C. David Lammy, Secretary of State for Foreign Affairs
  • D. Rachel Reeves, Chancellor of the Exchequer

Q9. The India–EFTA TEPA, India's first FTA with the EFTA bloc, added how many European partner countries to India's FTA network?

  • A. 2
  • B. 3
  • C. 4
  • D. 5

Q10. The India–EFTA TEPA, which entered into force on 1 October 2025, is distinguished as India's first Free Trade Agreement to do which one of the following?

  • A. Incorporate a legally binding, target-oriented investment-and-jobs commitment
  • B. Eliminate tariffs on 100% of India's tariff lines
  • C. Be concluded with a single West Asian partner country
  • D. Provide for visa-free movement of all service professionals

Q11. Consider the following statements about the institutional framework for India's Free Trade Agreements: 1. India's FTAs are negotiated by the Department of Commerce under the Ministry of Commerce and Industry. 2. By FY 2025-26, India's FTA network had grown to nine FTAs spanning 38 countries. 3. The Department of Revenue, and not the Department of Commerce, is the nodal department for negotiating India's FTAs. Which of the statements given above is/are correct?

  1. India's FTAs are negotiated by the Department of Commerce under the Ministry of Commerce and Industry.
  2. By FY 2025-26, India's FTA network had grown to nine FTAs spanning 38 countries.
  3. The Department of Revenue, and not the Department of Commerce, is the nodal department for negotiating India's FTAs.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. The conclusion of the India–EU Free Trade Agreement was jointly announced on 27 January 2026 at the 16th India–EU Summit by India's Prime Minister and which one of the following?

  • A. European Commission President Ursula von der Leyen
  • B. European Council President António Costa
  • C. European Parliament President Roberta Metsola
  • D. EU High Representative for Foreign Affairs Kaja Kallas