UPSC Prelims Practice Questions — Why is India-EU trade agreement significant?

Q1. With reference to the India–European Union package concluded in January 2026, consider the following instruments: 1. Free Trade Agreement (FTA) 2. Investment Protection Agreement (IPA) 3. Geographical Indications (GI) Agreement 4. India–EU Common Currency Arrangement Which of the above is/are correctly identified as part of the India–EU negotiating package?

  1. Free Trade Agreement (FTA)
  2. Investment Protection Agreement (IPA)
  3. Geographical Indications (GI) Agreement
  4. India–EU Common Currency Arrangement
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q2. The formal negotiations for the India–EU trade agreement were originally launched as the Broad-based Trade and Investment Agreement (BTIA) and concluded in January 2026. Approximately how many years did these negotiations span from formal launch to conclusion?

  • A. About 10 years
  • B. About 15 years
  • C. About 19 years
  • D. About 25 years

Q3. Which of the following is the nodal Indian ministry/department responsible for negotiating the India–EU Free Trade Agreement?

  • A. Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry
  • B. Department of Economic Affairs under the Ministry of Finance
  • C. Ministry of External Affairs
  • D. NITI Aayog

Q4. With reference to the India–EU Free Trade Agreement concluded in January 2026 as compared with India's earlier engagement with the EU, consider the following statements: 1. The 2026 agreement was preceded by the Broad-based Trade and Investment Agreement (BTIA) framework formally launched in 2007. 2. Unlike earlier proposals, the 2026 deal is being concluded alongside a stand-alone Investment Protection Agreement and a stand-alone Geographical Indications Agreement. 3. The 2026 agreement, for the first time, brings agricultural market access between India and the EU under a comprehensive single chapter. Which of the statements given above is/are correct?

  1. The 2026 agreement was preceded by the Broad-based Trade and Investment Agreement (BTIA) framework formally launched in 2007.
  2. Unlike earlier proposals, the 2026 deal is being concluded alongside a stand-alone Investment Protection Agreement and a stand-alone Geographical Indications Agreement.
  3. The 2026 agreement, for the first time, brings agricultural market access between India and the EU under a comprehensive single chapter.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. In the context of the India–EU trade package, the term 'Investment Protection Agreement (IPA)' refers to which one of the following?

  • A. A stand-alone treaty, negotiated in parallel with the FTA, that lays down rules on the protection and treatment of foreign investment between India and the EU
  • B. A clause within the FTA imposing ceilings on tariffs applicable to capital goods imported from the EU
  • C. An arrangement to fix the exchange-rate parity between the euro and the Indian rupee
  • D. A WTO-administered multilateral mechanism for settling investor–state disputes between India and EU member states
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