UPSC Prelims Practice Questions — Using trade treaty policy to strengthen arbitration
Q1. Into how many Parts is the Arbitration and Conciliation Act, 1996 divided?
- A. Three
- B. Four
- C. Five
- D. Seven
Q2. Which one of the following correctly describes the scope of the first Part of the Arbitration and Conciliation Act, 1996?
- A. It deals with arbitration generally, including the arbitration agreement, composition and jurisdiction of the tribunal, and the making of the award
- B. It deals exclusively with the enforcement of all foreign arbitral awards, whether or not made under any convention to which India is a party
- C. It is confined solely to conciliation proceedings and has no application whatsoever to arbitral tribunals or arbitral awards
- D. It contains only supplementary provisions such as the power to make rules and the removal of difficulties, and nothing else
Q3. In the scheme introduced by the Arbitration and Conciliation (Amendment) Act, 2019, what is a 'designated arbitral institution'?
- A. An arbitral institution designated by the Supreme Court for international commercial arbitration and by the concerned High Court for other arbitrations, to appoint arbitrators
- B. An arbitral institution designated by the Arbitration Council of India for international commercial arbitration and by the Central Government for other arbitrations, to appoint arbitrators
- C. An arbitral institution empowered by the Central Government to hear applications for setting aside arbitral awards in place of the principal civil court of a district
- D. An arbitral institution notified under the Act as an institution of national importance, holding exclusive jurisdiction over commercial disputes above a prescribed value
Q4. Consider the following functions in relation to the Arbitration Council of India:
1. Framing policies for grading arbitral institutions in India.
2. Framing policies and norms for the accreditation of arbitrators.
3. Maintaining a depository of arbitral awards made in India and abroad.
4. Hearing appeals against arbitral awards rendered in international commercial arbitration.
Which of the above is/are correctly identified as functions of the Council?
- Framing policies for grading arbitral institutions in India.
- Framing policies and norms for the accreditation of arbitrators.
- Maintaining a depository of arbitral awards made in India and abroad.
- Hearing appeals against arbitral awards rendered in international commercial arbitration.
- A. 1, 2 and 3
- B. 2 and 4
- C. 1 and 3 only
- D. 1, 2, 3 and 4
Q5. The USD 100 billion figure associated with the India–EFTA Trade and Economic Partnership Agreement refers to which one of the following?
- A. Targeted foreign direct investment by EFTA investors into India, to be reached in two tranches over fifteen years
- B. Targeted foreign direct and portfolio investment by EFTA investors into India, to be reached in equal annual tranches over ten years
- C. Targeted two-way merchandise and services trade turnover between India and the EFTA States, to be reached over fifteen years
- D. Targeted cumulative Indian outward investment into the EFTA States, to be reached in two tranches over fifteen years
Q6. Which department of the Government of India leads the negotiation of India's Bilateral Investment Treaties, including the treaty concluded with the United Arab Emirates?
- A. The Department of Economic Affairs under the Ministry of Finance
- B. The Department of Commerce under the Ministry of Commerce and Industry
- C. The Department of Legal Affairs under the Ministry of Law and Justice
- D. The Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry
Q7. The India–UAE Bilateral Investment Treaty that entered into force on 31 August 2024 superseded which earlier bilateral instrument?
- A. The Bilateral Investment Promotion and Protection Agreement concluded between the two countries in 2013
- B. The Comprehensive Economic Partnership Agreement concluded between the two countries in 2022
- C. The Bilateral Investment Promotion and Protection Agreement concluded between the two countries in 2000
- D. The Agreement on Trade and Economic Cooperation concluded between the two countries in 2016
Q8. Which one of the following correctly describes how the negotiation of India's free trade agreements and its bilateral investment treaties is institutionally divided?
- A. Free trade agreements are led by the Department of Commerce and investment treaties by the Department of Economic Affairs
- B. Free trade agreements are led by the Department of Commerce and investment treaties by the Department for Promotion of Industry and Internal Trade
- C. Free trade agreements are led by the Department of Economic Affairs and investment treaties by the Department of Legal Affairs
- D. Free trade agreements are led by the Ministry of External Affairs and investment treaties by the Department of Commerce
Q9. Consider the following statements comparing bilateral investment treaties and free trade agreements in India's recent treaty practice:
1. A bilateral investment treaty centres on protection of investments and investor–State dispute settlement through arbitration, whereas a free trade agreement centres on tariff concessions and market access.
2. The India–EFTA TEPA is the first free trade agreement signed by India to carry a commitment linked to investment and job creation.
3. The India–UAE Bilateral Investment Treaty allows a covered investor to commence international arbitration immediately on a dispute arising, without first pursuing domestic remedies.
Which of the statements given above is/are correct?
- A bilateral investment treaty centres on protection of investments and investor–State dispute settlement through arbitration, whereas a free trade agreement centres on tariff concessions and market access.
- The India–EFTA TEPA is the first free trade agreement signed by India to carry a commitment linked to investment and job creation.
- The India–UAE Bilateral Investment Treaty allows a covered investor to commence international arbitration immediately on a dispute arising, without first pursuing domestic remedies.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q10. With reference to the Indian Council of Arbitration, which one of the following is correct?
- A. It was set up in 1965 on the joint initiative of the Government of India and apex business chambers, and is a non-statutory arbitral institution
- B. It was set up in 1965 by a resolution of Parliament and is a statutory body charged with grading arbitral institutions in India
- C. It was created by the Arbitration and Conciliation Act, 1996 and is the designated appellate authority over domestic arbitral awards
- D. It was declared an institution of national importance by an Act of Parliament of 2019 and took over an existing dispute resolution centre
Q11. The India International Arbitration Centre, declared an institution of national importance, operates under the administrative charge of which ministry, and which body's undertakings vested in it?
- A. Ministry of Law and Justice; the International Centre for Alternative Dispute Resolution
- B. Ministry of Law and Justice; the Indian Council of Arbitration
- C. Ministry of Commerce and Industry; the International Centre for Alternative Dispute Resolution
- D. Ministry of Finance; the International Centre for Alternative Dispute Resolution