UPSC Prelims Practice Questions — India-U.K. trade deal hits late-stage ‘sticking points’

Q1. Under the India-UK Comprehensive Economic and Trade Agreement (CETA), which single sector has been officially projected to record the largest export growth to the U.K. (an estimated ~70%)?

  • A. Seafood (marine products)
  • B. Textiles and clothing
  • C. Leather and footwear
  • D. Engineering goods and auto components

Q2. With reference to the milestones of the India-UK CETA, consider the following statements: 1. The CETA negotiations were concluded on 6 May 2025, whereas the agreement was formally signed later, on 24 July 2025. 2. On India's behalf the agreement was signed by the Commerce Secretary, and on the U.K.'s behalf by the Secretary of State for Business and Trade. 3. Both the CETA and the accompanying Double Contribution Convention are set to enter into force on 15 July 2026. Which of the statements given above is/are correct?

  1. The CETA negotiations were concluded on 6 May 2025, whereas the agreement was formally signed later, on 24 July 2025.
  2. On India's behalf the agreement was signed by the Commerce Secretary, and on the U.K.'s behalf by the Secretary of State for Business and Trade.
  3. Both the CETA and the accompanying Double Contribution Convention are set to enter into force on 15 July 2026.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. The U.K. steel measure that became the late-stage 'sticking point' in operationalising CETA is best described as:

  • A. A ~60% reduction in tariff-free steel import quotas, with above-quota imports facing a 50% duty (raised from 25%), effective 1 July 2026
  • B. A ~60% reduction in tariff-free steel import quotas, with above-quota imports facing a 75% duty, effective 1 July 2026
  • C. A doubling of all steel import tariffs to 50% with no quota, effective 1 July 2026
  • D. A ~25% reduction in tariff-free steel import quotas, with above-quota imports facing a 60% duty, effective 1 July 2026

Q4. With reference to the India-U.K. Double Contribution Convention (DCC), consider the following statements: 1. It raises the exemption period for avoiding dual social security contributions from 3 years to 5 years. 2. It is scheduled to enter into force on a date later than that of the CETA. 3. It is expected to benefit more than 75,000 Indian professionals and over 900 companies. Which of the statements given above is/are correct?

  1. It raises the exemption period for avoiding dual social security contributions from 3 years to 5 years.
  2. It is scheduled to enter into force on a date later than that of the CETA.
  3. It is expected to benefit more than 75,000 Indian professionals and over 900 companies.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. In the context of the India-U.K. agreements, the Double Contribution Convention primarily aims to:

  • A. Exempt Indian workers and employers from making dual social security contributions in the U.K. during temporary assignments
  • B. Prevent the double taxation of corporate income earned by Indian firms operating in the U.K.
  • C. Allow Indian professionals to claim U.K. pension benefits after a single year of contribution
  • D. Eliminate customs duties charged twice on goods re-exported between India and the U.K.

Q6. The formal negotiations for the India-U.K. Free Trade Agreement (which culminated in CETA) were launched in which year?

  • A. 2020
  • B. 2021
  • C. 2022
  • D. 2023

Q7. How many rounds of negotiations were held between India and the U.K. before the conclusion of the CETA was announced on 6 May 2025?

  • A. 10
  • B. 12
  • C. 14
  • D. 16

Q8. Consider the following statements pairing India's trade agreements with their features: 1. India-UAE CEPA — India's first trade agreement in the MENA region. 2. India-Australia ECTA — India's first trade agreement with a developed economy in over a decade. 3. India-U.K. CETA — eliminates duties on about 99% of India's tariff lines. 4. India-UAE CEPA — grants immediate zero-duty access on 100% of tariff lines. Which of the above is/are NOT correctly matched?

  1. India-UAE CEPA — India's first trade agreement in the MENA region.
  2. India-Australia ECTA — India's first trade agreement with a developed economy in over a decade.
  3. India-U.K. CETA — eliminates duties on about 99% of India's tariff lines.
  4. India-UAE CEPA — grants immediate zero-duty access on 100% of tariff lines.
  • A. 1 only
  • B. 3 only
  • C. 4 only
  • D. 2 and 4 only

Q9. In the context of India's trade pacts, the acronym 'CEPA' (as in the India-UAE CEPA) stands for:

  • A. Comprehensive Economic Partnership Agreement
  • B. Comprehensive Economic and Trade Agreement
  • C. Economic Cooperation and Trade Agreement
  • D. Common Economic Preferential Arrangement

Q10. Under the WTO Agreement on Safeguards, a safeguard measure is applied primarily to protect which single entity against a surge in imports?

  • A. The domestic industry of the importing member facing serious injury
  • B. The exporters of the country whose goods are surging
  • C. Foreign investors holding equity in the importing member's firms
  • D. Consumers in the importing member seeking cheaper goods

Q11. Rajesh Agrawal, who publicly described the U.K.'s new steel measure as a 'sticking point' in operationalising CETA, holds which of the following positions?

  • A. Commerce Secretary (Department of Commerce, Ministry of Commerce and Industry)
  • B. Secretary, Department for Promotion of Industry and Internal Trade (DPIIT)
  • C. Foreign Secretary, Ministry of External Affairs
  • D. Chief Economic Adviser, Ministry of Finance