UPSC Prelims Practice Questions — India-EU FTA closer to becoming reality; text placed before Council

Q1. On the Indian side, the negotiation of the India–EU Free Trade Agreement, from the 2022 re-launch to its conclusion, has been led by which one of the following?

  • A. The Ministry of External Affairs, which alone conducts all of India's economic and trade treaty negotiations
  • B. The Department of Commerce, Ministry of Commerce and Industry
  • C. The Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry
  • D. The Department of Economic Affairs, Ministry of Finance, which clears every tariff commitment made by India

Q2. The announcement of 27 January 2026 that India–EU FTA negotiations had been 'concluded at political level' meant which one of the following?

  • A. Negotiators had settled all chapters and the agreement had become provisionally applicable, pending ratification by member states
  • B. Both sides had signed the agreement and only the exchange of instruments of ratification remained to be completed
  • C. Agreement had been reached on the substance of all chapters, with legal revision of the text, signature and internal approvals still to follow
  • D. The agreement had been endorsed by the European Parliament and only approvals by national parliaments of member states remained

Q3. In the procedure followed for the India–EU FTA, how many distinct institutions of the European Union must act on the agreement before it can enter into force?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q4. The 'India–EU Security and Defence Partnership', taken forward alongside the FTA at the January 2026 summit, is best described as which one of the following?

  • A. A mutual defence arrangement obliging India and the EU member states to render military assistance in the event of an armed attack on either side
  • B. India's admission to NATO's Enhanced Opportunity Partners framework, negotiated through the European Union acting as an intermediary
  • C. An EU commitment to finance India's procurement of defence equipment from European suppliers through the European Peace Facility
  • D. A framework for structured cooperation in areas such as maritime security, defence industry and crisis management, without any mutual defence obligation

Q5. Consider the following statements about the 16th India–EU Summit. Which of the above is/are NOT correct?

  1. It was held in New Delhi in January 2026.
  2. On the EU side it was led by both the President of the European Commission and the President of the European Council.
  3. It marked the re-launch of India–EU FTA negotiations after a nine-year lull.
  4. The finalised agreement texts were published by the European Commission within a few days of the summit's conclusion announcement.
  • A. 1 and 2
  • B. 3 only
  • C. 3 and 4
  • D. 2 and 3

Q6. In the EU's assessment of the India–EU FTA, the projected 'welfare gain' of EUR 23.7–41 billion is best understood as which one of the following?

  • A. The net gain in real income of the EU economy, measured as the combined improvement in consumer and producer surplus
  • B. The increase in the European Union's gross domestic product arising from higher output in trade-exposed sectors
  • C. The increase in tariff and customs revenue that EU member states would collect on imports originating in India
  • D. The increase in the value of two-way merchandise trade in goods between the European Union and India

Q7. The India–EU Free Trade Agreement is described as covering a combined market of approximately how many people?

  • A. About 1.4 billion
  • B. About 1.7 billion
  • C. About 2 billion
  • D. About 2.3 billion

Q8. According to the Government of India's review of achievements in Free Trade Agreements for 2025-26, India's nine free trade agreements of this phase together span how many countries?

  • A. 28
  • B. 33
  • C. 38
  • D. 44

Q9. Consider the following statements about India's recent trade agreements. Which of the statements given above is/are correct?

  1. India–UAE CEPA was signed in February 2022 and entered into force in May 2022.
  2. India–Australia ECTA was signed in April 2022 and entered into force in December 2022.
  3. India–UK CETA was signed in July 2025 and grants duty-free access to about 99% of Indian exports to the United Kingdom.
  4. India–Oman CEPA, concluded in December 2025, grants zero-duty access on 98.08% of India's tariff lines, covering 99.38% of Oman's exports by value.
  • A. 1 and 4
  • B. 2 and 3 only
  • C. 1, 2 and 3
  • D. 1, 2, 3 and 4

Q10. Consider the following statements regarding the EU offices and institutions involved in the India–EU FTA. Which of the above is/are NOT correct?

  1. Ursula von der Leyen holds the office of President of the European Commission.
  2. Antonio Costa holds the office of President of the European Council.
  3. The Council of the European Union, composed of ministers of member state governments, is the only EU institution whose approval is necessary for concluding a trade agreement.
  4. The European Commission's role in the India–EU FTA ended with the political conclusion of negotiations in January 2026, after which it had no further procedural function.
  • A. 1 and 2
  • B. 3 and 4
  • C. 2, 3 and 4
  • D. 4 only

Q11. Consider the following statements about the sectoral treatment under the India–EU Free Trade Agreement. Which of the statements given above is/are correct?

  1. Textiles and apparel obtain zero-duty access in the EU market from the entry into force of the agreement.
  2. Dairy products and cereals such as rice and wheat have been retained by India as sensitive sectors shielded from tariff concessions.
  3. Automobiles have been opened up on the Indian side through a calibrated, quota-based liberalisation package rather than across-the-board tariff elimination.
  4. Gems and jewellery have been kept out of the immediate duty-elimination list and placed instead in the phased-elimination category.
  • A. 2 and 4
  • B. 1, 2 and 3
  • C. 1 and 4
  • D. 3 and 4