UPSC Prelims Practice Questions — ‘India-U.K. FTA gives predictability for firms on both sides’

Q1. With reference to the tariff-liberalisation architecture of the India-UK CETA, consider the following statements: 1. The UK eliminates tariffs on 100% of its tariff lines, whereas India liberalises over 80% of its tariff lines. 2. The UK's tariff liberalisation covers about 99.6% of India's export value, whereas India's liberalisation covers about 70% of its imports from the UK by value. 3. India phases its tariff cuts over seven years, while the UK phases its cuts over ten years. Which of the statements given above is/are correct?

  1. The UK eliminates tariffs on 100% of its tariff lines, whereas India liberalises over 80% of its tariff lines.
  2. The UK's tariff liberalisation covers about 99.6% of India's export value, whereas India's liberalisation covers about 70% of its imports from the UK by value.
  3. India phases its tariff cuts over seven years, while the UK phases its cuts over ten years.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. Under the India-UK CETA, India shielded certain sensitive products by keeping them out of tariff concessions. Which of the following are correctly identified as such protected (excluded) items on the Indian side? 1. Dairy products 2. Apples 3. Marine products 4. Gold and jewellery Which of the above are correctly identified?

  1. Dairy products
  2. Apples
  3. Marine products
  4. Gold and jewellery
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1, 2 and 4
  • D. 1, 3 and 4

Q3. Consider the following statements about India's recent free trade agreements with developed economies: 1. The India-UAE CEPA was signed in February 2022. 2. The India-Australia ECTA entered into force in December 2022. 3. The India-EFTA TEPA was concluded with Switzerland, Norway, Iceland and Liechtenstein. 4. The India-EFTA TEPA entered into force in October 2024. Which of the statements given above are correct?

  1. The India-UAE CEPA was signed in February 2022.
  2. The India-Australia ECTA entered into force in December 2022.
  3. The India-EFTA TEPA was concluded with Switzerland, Norway, Iceland and Liechtenstein.
  4. The India-EFTA TEPA entered into force in October 2024.
  • A. 1, 2 and 3 only
  • B. 2, 3 and 4 only
  • C. 1 and 4 only
  • D. 1, 2, 3 and 4

Q4. Comparing the India-UK CETA with the India-EFTA TEPA, consider the following statements: 1. The India-EFTA TEPA was the first Indian FTA to embed a binding investment commitment, of USD 100 billion over 15 years. 2. Like the EFTA TEPA, the India-UK CETA carries a binding investment commitment of USD 100 billion. 3. The India-UK CETA is India's most comprehensive FTA with a G-7 economy, while the EFTA TEPA was India's first FTA with developed European nations. Which of the statements given above is/are correct?

  1. The India-EFTA TEPA was the first Indian FTA to embed a binding investment commitment, of USD 100 billion over 15 years.
  2. Like the EFTA TEPA, the India-UK CETA carries a binding investment commitment of USD 100 billion.
  3. The India-UK CETA is India's most comprehensive FTA with a G-7 economy, while the EFTA TEPA was India's first FTA with developed European nations.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. On the Indian side, the India-UK CETA and its accompanying Double Contribution Convention are steered by which nodal ministry?

  • A. The Ministry of Labour and Employment, through the Employees' Provident Fund Organisation
  • B. The Ministry of Commerce and Industry, through the Department of Commerce
  • C. The Ministry of External Affairs, through the Economic Diplomacy Division
  • D. The Ministry of Finance, through the Department of Economic Affairs

Q6. In the context of the India-UK CETA, what does the Double Contribution Convention essentially provide?

  • A. Indian workers on temporary UK assignments and their employers are exempted from paying UK social security (National Insurance) contributions for up to three years
  • B. Indian workers must contribute to both India's and the UK's social security systems in order to secure pension benefits in both countries
  • C. India and the UK each contribute equally to a jointly administered social security fund covering migrant workers from both sides
  • D. Indian workers automatically become eligible for UK old-age pension in addition to their Indian provident fund after five years of work

Q7. A frequently cited gain for Indian professionals under the CETA services chapter is that the UK will apply 'no Economic Needs Test (ENT)'. What is an Economic Needs Test?

  • A. A requirement under which the host country may restrict entry of foreign service suppliers by first assessing domestic labour-market demand or availability of local workers
  • B. A test that screens incoming foreign professionals against a minimum salary or income threshold set by the host country
  • C. An assessment of whether the sending country's economy will gain net foreign exchange from the professional's overseas posting
  • D. A means test determining whether a foreign professional is financially self-sufficient to reside in the host country without state support

Q8. Under the India-UK CETA, in how many services sub-sectors did the UK grant market access to India?

  • A. 12
  • B. 33
  • C. 137
  • D. 16

Q9. Consider the following statements about the negotiation and coming-into-effect of the India-UK CETA: 1. Formal negotiations were launched in 2022 and concluded after 14 rounds. 2. The agreement was signed on 24 July 2025 in London during Prime Minister Modi's visit, with UK Prime Minister Keir Starmer. 3. The agreement entered into force on the same day it was signed. Which of the statements given above is/are correct?

  1. Formal negotiations were launched in 2022 and concluded after 14 rounds.
  2. The agreement was signed on 24 July 2025 in London during Prime Minister Modi's visit, with UK Prime Minister Keir Starmer.
  3. The agreement entered into force on the same day it was signed.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q10. The entry into force of the India-UK CETA on 15 July 2026 was marked by the flag-off of the first symbolic export consignment from which city?

  • A. Bengaluru
  • B. Mumbai
  • C. Tiruppur
  • D. Surat

Q11. Consider the following statements about the City of London Corporation: 1. It is Britain's oldest local-government body and maintains its own police force. 2. It governs the entire Greater London area and is the sole local authority for the capital. 3. The office of Lord Mayor of the City of London is distinct from that of the Mayor of London. Which of the statements given above is/are correct?

  1. It is Britain's oldest local-government body and maintains its own police force.
  2. It governs the entire Greater London area and is the sole local authority for the capital.
  3. The office of Lord Mayor of the City of London is distinct from that of the Mayor of London.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. Among the following categories of Indian exports, on which does the CETA eliminate the single highest pre-existing UK tariff (reducing it to zero)?

  • A. Processed food products
  • B. Engineering goods and auto components
  • C. Leather and footwear products
  • D. Textiles and clothing