UPSC Prelims Practice Questions — What are the gains from the India-U.K. trade deal?

Q1. In the sequence of milestones of the India–U.K. Comprehensive Economic and Trade Agreement (CETA) and its companion pact, which one of the following occurred earliest?

  • A. Conclusion of negotiations after 14 rounds (6 May 2025)
  • B. Signing of CETA in London (24 July 2025)
  • C. Signing of the Double Contribution Convention (10 February 2026)
  • D. Entry into force of CETA (15 July 2026)

Q2. With reference to the timeline of the India–U.K. CETA and the Double Contribution Convention (DCC), consider the following statements: 1. CETA was concluded after 14 rounds of negotiations on 6 May 2025. 2. CETA was signed in London in July 2025, roughly a year before it entered into force. 3. The Double Contribution Convention was signed on the very same day as CETA. Which of the statements given above is/are correct?

  1. CETA was concluded after 14 rounds of negotiations on 6 May 2025.
  2. CETA was signed in London in July 2025, roughly a year before it entered into force.
  3. The Double Contribution Convention was signed on the very same day as CETA.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q3. Under the India–U.K. Double Contribution Convention, posted workers are exempted from paying dual social-security (National Insurance) contributions for assignments of up to how many months?

  • A. 36 months
  • B. 48 months
  • C. 60 months
  • D. 24 months

Q4. The India–U.K. CETA was signed on behalf of India in London by which one of the following Union Ministers?

  • A. Union Minister of Commerce and Industry, Piyush Goyal
  • B. Union Minister of External Affairs, S. Jaishankar
  • C. Union Minister of Finance, Nirmala Sitharaman
  • D. Union Minister of Commerce and Industry, Ashwini Vaishnaw

Q5. The description of the India–U.K. CETA as a 'comprehensive' agreement, spanning 30 chapters, most precisely means that it:

  • A. Covers a wide range of areas beyond goods, including services, digital trade, government procurement, intellectual property, labour, environment and gender
  • B. Applies exclusively to the elimination of tariffs on all traded goods with no coverage of services
  • C. Covers only trade in goods and the movement of capital between the two countries
  • D. Is limited solely to agriculture and processed-food trade between India and the UK

Q6. Among the following Indian export categories, on which one did the UK agree to remove the highest peak tariff under the CETA?

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

Q7. Which one of the following trade-agreement partners granted India preferential (zero-duty) access on 100% of its tariff lines — the most extensive coverage among these agreements?

  • A. Australia (under ECTA)
  • B. United Arab Emirates (under CEPA)
  • C. United Kingdom (under CETA)
  • D. Japan (under CEPA)

Q8. With reference to India's trade agreements, consider the following statements: 1. The India–UAE CEPA came into force in 2022. 2. Under the India–Australia ECTA, Australia extended preferential access to India on 100% of its tariff lines. 3. The India–U.K. CETA entered into force in July 2025. 4. Under ECTA, India offered preferential access to Australia on over 70% of its tariff lines. Which of the statements given above are correct?

  1. The India–UAE CEPA came into force in 2022.
  2. Under the India–Australia ECTA, Australia extended preferential access to India on 100% of its tariff lines.
  3. The India–U.K. CETA entered into force in July 2025.
  4. Under ECTA, India offered preferential access to Australia on over 70% of its tariff lines.
  • A. 1, 2 and 4 only
  • B. 1 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q9. Under the WTO/GATS framework that shapes the CETA services chapter, the movement of Indian professionals such as contractual service suppliers and intra-corporate transferees into the UK is governed under which mode of supply of services?

  • A. Mode 4 – movement of natural persons
  • B. Mode 1 – cross-border supply
  • C. Mode 2 – consumption abroad
  • D. Mode 3 – commercial presence

Q10. Within the India–U.K. CETA, the 'government procurement' chapter most precisely provides that:

  • A. Indian suppliers gain non-discriminatory access to the UK's central government procurement market (valued at about £90 billion), with reciprocal UK access to India's procurement market
  • B. The UK government undertakes to purchase a fixed annual quota of Indian goods directly from the Government of India
  • C. Both governments agree to jointly procure defence equipment through a single shared tendering agency
  • D. Indian firms are exempted from all taxes on any goods sold to UK private-sector buyers