UPSC Prelims Practice Questions — India, U.K. announce July 15 as trade deal implementation date
Q1. With reference to the India-UK Comprehensive Economic and Trade Agreement (CETA), 2025, which of the following is the nodal Ministry on the Indian side that has signed and is responsible for operationalising the Agreement?
- A. Ministry of External Affairs
- B. Ministry of Commerce and Industry
- C. Ministry of Finance
- D. Ministry of Corporate Affairs
Q2. Consider the following statements regarding the India-UK Comprehensive Economic and Trade Agreement (CETA):
1. The Agreement was signed on 24 July 2025 by India's Commerce and Industry Minister and the UK Secretary of State for Business and Trade.
2. Upon entry into force, the United Kingdom eliminates tariffs on about 99% of India's product lines, covering nearly the entire trade value.
3. The Double Contribution Convention (DCC) on social security enters into force on the same date as the CETA.
4. Under the CETA, India grants zero-tariff access on 100% of UK tariff lines from Day 1 of implementation.
Which of the statements given above is/are correct?
- The Agreement was signed on 24 July 2025 by India's Commerce and Industry Minister and the UK Secretary of State for Business and Trade.
- Upon entry into force, the United Kingdom eliminates tariffs on about 99% of India's product lines, covering nearly the entire trade value.
- The Double Contribution Convention (DCC) on social security enters into force on the same date as the CETA.
- Under the CETA, India grants zero-tariff access on 100% of UK tariff lines from Day 1 of implementation.
- A. 1, 2 and 3 only
- B. 2, 3 and 4 only
- C. 1 and 4 only
- D. 1, 2, 3 and 4
Q3. Consider the following statements regarding the India-UK Comprehensive Economic and Trade Agreement (CETA):
1. The nodal ministry on the Indian side for the CETA is the Ministry of Commerce and Industry.
2. The CETA was signed by India and the United Kingdom in July 2025.
3. Bilateral goods and services trade between India and the UK currently stands at about USD 56 billion, with a joint target to double it by 2030.
4. The CETA replaces the WTO-administered Generalised System of Preferences (GSP) benefits previously extended by the United Kingdom to India.
Which of the statements given above is/are NOT correct?
- The nodal ministry on the Indian side for the CETA is the Ministry of Commerce and Industry.
- The CETA was signed by India and the United Kingdom in July 2025.
- Bilateral goods and services trade between India and the UK currently stands at about USD 56 billion, with a joint target to double it by 2030.
- The CETA replaces the WTO-administered Generalised System of Preferences (GSP) benefits previously extended by the United Kingdom to India.
- A. 1 and 2 only
- B. 3 only
- C. 4 only
- D. 2 and 4 only
Q4. In the context of the India-UK Comprehensive Economic and Trade Agreement (CETA), 2025, the term 'Double Contribution Convention (DCC)' refers to:
- A. A bilateral social-security arrangement under which employees temporarily working in the other country, and their employers, are liable to pay social security contributions in only one country at a time.
- B. A fiscal arrangement under which the United Kingdom doubles its contribution to India's Production Linked Incentive (PLI) corpus for select sectors.
- C. A trade-finance facility under which export credit available to Indian MSMEs exporting to the United Kingdom is doubled.
- D. An environmental side-agreement under which both countries commit to double their climate-finance contributions to multilateral funds.
Q5. The India-UK Comprehensive Economic and Trade Agreement (CETA), 2025, was signed on the Indian side by which one of the following authorities?
- A. The Union Minister of Commerce and Industry
- B. The Union Minister of External Affairs
- C. The Union Minister of Finance
- D. The Commerce Secretary, Government of India