UPSC Prelims Practice Questions — India-U.K. FTA a boost for farmers and small,medium firms, says PM
Q1. Which one of the following is India's first free trade agreement to enter into force with a G-7 economy?
- A. India-U.K. Comprehensive Economic and Trade Agreement (CETA)
- B. India-UAE Comprehensive Economic Partnership Agreement (CEPA)
- C. India-Australia Economic Cooperation and Trade Agreement (ECTA)
- D. India-EFTA Trade and Economic Partnership Agreement (TEPA)
Q2. After fourteen rounds of negotiations, the India-U.K. CETA was formally signed in London in which year?
- A. 2023
- B. 2024
- C. 2025
- D. 2026
Q3. Under the Double Contribution Convention accompanying the CETA, what is the maximum period for which temporarily posted Indian workers and their employers are exempted from UK social security (National Insurance) contributions?
- A. One year
- B. Three years
- C. Five years
- D. Ten years
Q4. The Double Contribution Convention (DCC) signed alongside the India-U.K. CETA is best described as which of the following?
- A. A social security agreement that exempts temporarily posted workers and their employers from paying social security contributions simultaneously in both countries
- B. A double taxation avoidance agreement covering corporate income of firms operating in both countries
- C. A bilateral currency-swap arrangement between the RBI and the Bank of England
- D. A mutual-recognition arrangement for customs valuation and rules of origin
Q5. Consider the following statements regarding India's free trade agreements:
1. The India-UAE CEPA came into effect in 2022.
2. The India-Australia ECTA was India's first trade agreement with a developed economy in over a decade.
3. The India-U.K. CETA is India's first FTA with a G-7 economy.
4. The India-U.K. CETA was India's first-ever free trade agreement.
Which of the statements given above is/are NOT correct?
- The India-UAE CEPA came into effect in 2022.
- The India-Australia ECTA was India's first trade agreement with a developed economy in over a decade.
- The India-U.K. CETA is India's first FTA with a G-7 economy.
- The India-U.K. CETA was India's first-ever free trade agreement.
- A. 4 only
- B. 3 and 4
- C. 1 only
- D. 2 and 3
Q6. In the context of India's trade agreements, the abbreviation 'CEPA' (as used in the India-UAE CEPA) stands for which of the following?
- A. Comprehensive Economic Partnership Agreement
- B. Comprehensive Economic and Trade Agreement
- C. Economic Cooperation and Trade Agreement
- D. Common External Preferential Arrangement
Q7. Consider the following statements regarding tariff benefits under the India-U.K. CETA:
1. Marine products from India secured duty-free access to the UK market.
2. Tariffs of up to 12% on textiles and clothing are reduced to zero.
3. Tariffs of up to 16% on leather and footwear are eliminated.
4. These tariff eliminations took effect from July 2025, immediately upon signing.
Which of the statements given above is/are NOT correct?
- Marine products from India secured duty-free access to the UK market.
- Tariffs of up to 12% on textiles and clothing are reduced to zero.
- Tariffs of up to 16% on leather and footwear are eliminated.
- These tariff eliminations took effect from July 2025, immediately upon signing.
- A. 4 only
- B. 1 and 4
- C. 2 and 3
- D. 3 only
Q8. Which of the following are correctly identified as Indian sectors benefiting from improved duty-free market access under the India-U.K. CETA?
1. Gems and jewellery
2. Marine products
3. Dairy products
4. Toys
Which of the above is/are correctly identified?
- Gems and jewellery
- Marine products
- Dairy products
- Toys
- A. 1, 2 and 4
- B. 1 and 3
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q9. The 'India-U.K. Vision 2035', announced in connection with the CETA, is best described as which of the following?
- A. A bilateral partnership framework for cooperation that replaces the earlier India-U.K. Roadmap 2030
- B. A plurilateral tariff-reduction schedule negotiated within the WTO
- C. A domestic export-promotion scheme of India's Ministry of Commerce
- D. A United Nations sustainable development target adopted by both countries
Q10. With reference to the India-U.K. economic relationship, consider the following statements:
1. The India-U.K. Vision 2035 replaces the earlier India-U.K. Roadmap 2030.
2. A refreshed Joint Economic and Trade Committee (JETCO) is to oversee implementation of the CETA.
3. The CETA is India's largest bilateral FTA with a G-7 economy to date.
4. The Double Contribution Convention entered into force one year after the CETA.
Which of the statements given above is/are correct?
- The India-U.K. Vision 2035 replaces the earlier India-U.K. Roadmap 2030.
- A refreshed Joint Economic and Trade Committee (JETCO) is to oversee implementation of the CETA.
- The CETA is India's largest bilateral FTA with a G-7 economy to date.
- The Double Contribution Convention entered into force one year after the CETA.
- A. 1, 2 and 3
- B. 1 and 4
- C. 2 and 3 only
- D. 1, 2, 3 and 4
Q11. Consider the following statements regarding the signing of the India-U.K. CETA:
1. Piyush Goyal, India's Commerce and Industry Minister, signed the agreement on behalf of India.
2. Jonathan Reynolds signed it as the UK Secretary of State for Business and Trade.
3. It was signed in the presence of Prime Minister Narendra Modi and Prime Minister Keir Starmer.
4. The agreement was signed in New Delhi.
Which of the statements given above is/are NOT correct?
- Piyush Goyal, India's Commerce and Industry Minister, signed the agreement on behalf of India.
- Jonathan Reynolds signed it as the UK Secretary of State for Business and Trade.
- It was signed in the presence of Prime Minister Narendra Modi and Prime Minister Keir Starmer.
- The agreement was signed in New Delhi.
- A. 4 only
- B. 1 and 4
- C. 3 only
- D. 2 and 3
Q12. Which of the following is the nodal agency responsible for negotiating India's free trade agreements such as the India-U.K. CETA?
- A. Department of Commerce, Ministry of Commerce and Industry
- B. Ministry of External Affairs
- C. Department of Economic Affairs, Ministry of Finance
- D. Department for Promotion of Industry and Internal Trade (DPIIT)