UPSC Prelims Practice Questions — New trade pact a win-win for India and U.K.
Q1. Under the India–UK CETA, which one of the following correctly describes the tariff commitment secured by India for its exports to the United Kingdom?
- A. Zero-duty access on about 90% of tariff lines, covering roughly 85% of India's trade value to the UK
- B. A phased reduction of all tariffs to 10% over a ten-year period across every product line
- C. Zero-duty access on about 99% of tariff lines, covering nearly 100% of India's trade value to the UK
- D. Zero-duty access confined to labour-intensive goods that make up about 65% of India's exports
Q2. Which Union Ministry is the nodal ministry for the negotiation and implementation of the India–UK CETA?
- A. Ministry of Commerce and Industry (Department of Commerce)
- B. Ministry of External Affairs (Economic Diplomacy Division)
- C. Ministry of Finance (Department of Economic Affairs)
- D. Ministry of Micro, Small and Medium Enterprises
Q3. By which year is India–UK bilateral trade targeted to double to over USD 100 billion under the CETA framework?
- A. 2027
- B. 2030
- C. 2035
- D. 2047
Q4. Consider the following statements regarding India–UK economic engagement at the time CETA entered into force:
1. Current India–UK bilateral trade is valued at about USD 56 billion.
2. The UK is India's 6th largest inward investor.
3. The UK's cumulative equity investment in India stands at about USD 19 billion (till September 2024).
4. Bilateral trade is targeted to exceed USD 100 billion by 2030.
Which of the above is/are correctly identified?
- Current India–UK bilateral trade is valued at about USD 56 billion.
- The UK is India's 6th largest inward investor.
- The UK's cumulative equity investment in India stands at about USD 19 billion (till September 2024).
- Bilateral trade is targeted to exceed USD 100 billion by 2030.
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 3 and 4
Q5. The India–UK Vision 2035 roadmap articulated alongside CETA sets goals and milestones across how many broad priority areas — trade, technology, climate, defence, migration, education and health?
- A. Four
- B. Five
- C. Six
- D. Seven
Q6. Consider the following statements comparing the India–UK Vision 2035 roadmap with its predecessor:
1. Vision 2035 builds upon and succeeds the earlier India–UK Roadmap 2030.
2. Vision 2035 was articulated around the July 2025 signing of CETA as a longer-term strategic roadmap.
3. Unlike the earlier roadmap, Vision 2035 excludes defence and security cooperation from its scope.
Which of the statements given above is/are correct?
- Vision 2035 builds upon and succeeds the earlier India–UK Roadmap 2030.
- Vision 2035 was articulated around the July 2025 signing of CETA as a longer-term strategic roadmap.
- Unlike the earlier roadmap, Vision 2035 excludes defence and security cooperation from its scope.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q7. The Double Contribution Convention (Agreement on Social Security Contributions) accompanying CETA is best described as which one of the following?
- A. A pact exempting eligible Indian professionals temporarily working in the UK from UK social security contributions for a set period, thereby avoiding dual payments
- B. A convention requiring Indian professionals in the UK to contribute simultaneously to the social security funds of both countries
- C. A double-taxation avoidance agreement covering the income-tax liabilities of professionals who work across both countries
- D. A treaty entitling retired United Kingdom nationals to draw pension benefits from India's social security system
Q8. Consider the following statements about the Double Contribution Convention under CETA:
1. Eligible Indian workers on temporary UK assignments are exempted from UK social security contributions for the duration of their posting.
2. The Convention is expected to benefit more than 75,000 Indian professionals and over 900 companies.
3. The Convention permanently exempts all Indian workers in the UK from every category of tax and levy in that country.
Which of the statements given above is/are correct?
- Eligible Indian workers on temporary UK assignments are exempted from UK social security contributions for the duration of their posting.
- The Convention is expected to benefit more than 75,000 Indian professionals and over 900 companies.
- The Convention permanently exempts all Indian workers in the UK from every category of tax and levy in that country.
- A. 2 and 3 only
- B. 1 and 2 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q9. Consider the following pairs of India's recent trade agreements and their partners:
1. CEPA — United Arab Emirates
2. ECTA — Australia
3. TEPA — European Free Trade Association (EFTA)
4. CETA — European Union
Which of the above pairs is/are NOT correctly matched?
- CEPA — United Arab Emirates
- ECTA — Australia
- TEPA — European Free Trade Association (EFTA)
- CETA — European Union
- A. 4 only
- B. 1 and 4
- C. 3 and 4
- D. 2 and 3
Q10. The India–EFTA Trade and Economic Partnership Agreement (TEPA), which was signed in March 2024, entered into force in which year?
- A. 2024
- B. 2025
- C. 2026
- D. 2027
Q11. The negotiations for the India–UK CETA were concluded in which month and year?
- A. January 2022
- B. May 2025
- C. July 2025
- D. October 2025
Q12. Consider the following statements about zero-duty access to the UK market under CETA:
1. Textiles and apparel receive zero-duty access to the UK market.
2. Leather and footwear receive zero-duty access to the UK market.
3. Marine products receive zero-duty access to the UK market.
4. All Indian dairy products receive immediate zero-duty access to the UK market.
Which of the above is/are NOT correct?
- Textiles and apparel receive zero-duty access to the UK market.
- Leather and footwear receive zero-duty access to the UK market.
- Marine products receive zero-duty access to the UK market.
- All Indian dairy products receive immediate zero-duty access to the UK market.
- A. 1 and 4
- B. 3 only
- C. 4 only
- D. 2 and 4