UPSC Prelims Practice Questions — EU chief wants to seal pact on investment with India

Q1. India-EU trade negotiations, which had been suspended since 2013, were formally relaunched in which year, alongside separate tracks on investment protection and geographical indications?

  • A. 2019
  • B. 2020
  • C. 2021
  • D. 2023

Q2. In the history of India-EU trade talks, the abbreviation 'BTIA' refers to which of the following?

  • A. Bilateral Trade and Investment Accord
  • B. Broad-based Trade and Investment Agreement
  • C. Balanced Tariff and Investment Arrangement
  • D. Bloc Trade and Industrial Alliance

Q3. Consider the following statements regarding the parallel negotiation tracks between India and the EU launched in 2021: 1. The Free Trade Agreement track saw its negotiations concluded in January 2026. 2. The Investment Protection Agreement remains under negotiation. 3. An Agreement on Geographical Indications is one of the three parallel tracks. 4. A Mutual Recognition Agreement on customs procedures forms a fourth parallel track. Which of the above is/are correctly identified?

  1. The Free Trade Agreement track saw its negotiations concluded in January 2026.
  2. The Investment Protection Agreement remains under negotiation.
  3. An Agreement on Geographical Indications is one of the three parallel tracks.
  4. A Mutual Recognition Agreement on customs procedures forms a fourth parallel track.
  • A. 1 and 2 only
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1 and 4 only

Q4. Among the three parallel India-EU negotiation tracks launched in 2021, which one was the first to have its negotiations concluded?

  • A. Investment Protection Agreement
  • B. Agreement on Geographical Indications
  • C. Free Trade Agreement
  • D. Trade and Technology Council framework

Q5. The main sticking point in the India-EU Investment Protection Agreement concerns 'ISDS'. In this context, ISDS refers to a mechanism that allows:

  • A. an investor to bring a claim directly against a host state before an arbitral tribunal
  • B. two states to settle tariff disputes through the WTO Appellate Body
  • C. a host state to expropriate foreign assets without compensation
  • D. the European Commission to fine member states for trade violations

Q6. On the Indian side, which ministry is the nodal authority that negotiates and operationalises India's free trade and investment agreements, including the pact with the EU?

  • A. Ministry of External Affairs
  • B. Ministry of Finance
  • C. Ministry of Commerce and Industry
  • D. Ministry of Electronics and Information Technology

Q7. How many working groups function under the India-EU Trade and Technology Council (TTC)?

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

Q8. In the context of the India-EU strategic partnership, 'TTC' stands for which of the following?

  • A. Technology Transfer Committee
  • B. Trade and Technology Council
  • C. Trade and Tariff Commission
  • D. Technical Trade Coordination

Q9. Consider the following statements about how the EU conducts trade negotiations such as the one with India: 1. The European Commission negotiates trade agreements on behalf of all EU member states. 2. The common commercial policy is an exclusive competence of the Union. 3. The consent of the European Parliament is required before an EU trade agreement can be concluded. 4. Individual EU member states separately negotiate tariff schedules with third countries. Which of the above is/are correctly identified?

  1. The European Commission negotiates trade agreements on behalf of all EU member states.
  2. The common commercial policy is an exclusive competence of the Union.
  3. The consent of the European Parliament is required before an EU trade agreement can be concluded.
  4. Individual EU member states separately negotiate tariff schedules with third countries.
  • A. 1, 2 and 4
  • B. 2 and 4 only
  • C. 1, 2 and 3
  • D. 3 only

Q10. At the European Round Table for Industry held at Gothenburg in May 2026, PM Modi pitched a target of doubling India-EU bilateral trade within how many years?

  • A. Three years
  • B. Five years
  • C. Seven years
  • D. Ten years

Q11. India's trade pact with the EFTA bloc, which came into force on 1 October 2025, is titled 'TEPA'. The abbreviation TEPA stands for:

  • A. Tariff and Economic Preferential Arrangement
  • B. Trade and Economic Partnership Agreement
  • C. Trade, Economy and Partnership Accord
  • D. Trade Enhancement and Protection Agreement