UPSC Prelims Practice Questions — India, Korea agree to address India’s growing bilateral trade deficit

Q1. In which year did the India-Korea Comprehensive Economic Partnership Agreement (IK CEPA) come into force?

  • A. 2009
  • B. 2010
  • C. 2011
  • D. 2016

Q2. In the context of India's trade pacts, a 'Comprehensive Economic Partnership Agreement (CEPA)', such as the IK CEPA, is best described as:

  • A. A pact confined solely to the reduction of customs tariffs on traded goods
  • B. A broad agreement covering trade in goods, services, investment and wider economic cooperation
  • C. A preferential arrangement limited to a fixed list of agricultural commodities
  • D. A monetary framework for currency swaps and central-bank cooperation

Q3. Consider the following statements regarding the upgrade negotiations of the India-Korea CEPA: 1. The upgrade negotiations formally began in 2016. 2. The round immediately preceding the 12th round was held in Seoul in July 2024. 3. Including the 12th round, a total of eleven rounds of upgrade negotiations have been held. Which of the statements given above is/are correct?

  1. The upgrade negotiations formally began in 2016.
  2. The round immediately preceding the 12th round was held in Seoul in July 2024.
  3. Including the 12th round, a total of eleven rounds of upgrade negotiations have been held.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. The 12th round of the IK CEPA upgrade negotiations was co-chaired from the Indian side by which of the following officials?

  • A. Piyush Goyal, Union Minister of Commerce and Industry
  • B. Kapil Chaudhary, Joint Secretary, Department of Commerce
  • C. Yeo Han-koo, Minister of Trade
  • D. Park Geun-oh, Director General for Trade Agreement Policy, MOTIE

Q5. With reference to the 12th round of IK CEPA upgrade negotiations, which one of the following was NOT among the negotiation areas or newly introduced sub-groups? 1. Rules of Origin and Origin Procedures 2. Digital trade 3. Dispute settlement and trade remedies 4. Sanitary and Phytosanitary (SPS) standards Which of the above is NOT correct?

  1. Rules of Origin and Origin Procedures
  2. Digital trade
  3. Dispute settlement and trade remedies
  4. Sanitary and Phytosanitary (SPS) standards
  • A. 1 only
  • B. 3 only
  • C. 2 and 4 only
  • D. 1 and 3 only

Q6. Consider the following statements comparing the 12th round of IK CEPA upgrade negotiations with earlier rounds: 1. The 12th round was held in New Delhi, whereas the 11th round was held in Seoul. 2. On the Korean side, the 12th round was co-chaired by Park Geun-oh, Director General for Trade Agreement Policy of the Ministry of Foreign Affairs. 3. The 12th round saw the introduction of new sub-groups such as digital trade and supply chain cooperation. Which of the statements given above is/are correct?

  1. The 12th round was held in New Delhi, whereas the 11th round was held in Seoul.
  2. On the Korean side, the 12th round was co-chaired by Park Geun-oh, Director General for Trade Agreement Policy of the Ministry of Foreign Affairs.
  3. The 12th round saw the introduction of new sub-groups such as digital trade and supply chain cooperation.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. The Joint Declaration of 20 April 2026 to accelerate the IK CEPA upgrade was signed on India's behalf by the Union Minister heading which ministry?

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

Q8. The Joint Declaration of 20 April 2026 accelerating the IK CEPA upgrade was signed during the State Visit to India of which head of state?

  • A. President Yoon Suk-yeol
  • B. President Lee Jae-myung
  • C. President Moon Jae-in
  • D. Prime Minister Han Duck-soo

Q9. Which one of the following statements about India's bilateral trade deficit with the Republic of Korea since the IK CEPA came into force is correct?

  • A. The deficit has remained constant at around $5 billion every year since 2010
  • B. The deficit widened from about $5.1 billion in the year ending March 2010 to about $15.6 billion in 2025-26
  • C. India has consistently maintained a trade surplus with Korea since 2010
  • D. The deficit was entirely eliminated once upgrade talks began in 2016

Q10. In the 12th round of the IK CEPA upgrade negotiations, both sides formally acknowledged which issue as India's chief concern under the agreement?

  • A. India's widening bilateral trade deficit with Korea
  • B. Korea's high tariff on Indian textile exports
  • C. A shortage of container shipping capacity between the two countries
  • D. The non-convertibility of the two national currencies

Q11. As per India's achievements in Free Trade Agreements for 2025-26, India's network of operational FTAs spanned approximately how many countries?

  • A. 28
  • B. 33
  • C. 38
  • D. 42

Q12. India's Act East Policy, within whose broader framework its economic engagement with Korea and the Indo-Pacific is situated, emphasizes certain focus areas. Which of the following are correctly identified as its stated focus areas? 1. Connectivity 2. Commerce 3. Conservation 4. Culture Which of the above is/are correctly identified?

  1. Connectivity
  2. Commerce
  3. Conservation
  4. Culture
  • A. 1 and 3 only
  • B. 1, 2 and 4 only
  • C. 2 and 4 only
  • D. 1, 2, 3 and 4