UPSC Prelims Practice Questions — ‘Gold standard’ India-U.K. trade deal is coming into effect today

Q1. The India-UK Comprehensive Economic and Trade Agreement (CETA) is coordinated in India solely by which of the following as the nodal department?

  • A. Department of Commerce, Ministry of Commerce and Industry
  • B. Department for Promotion of Industry and Internal Trade (DPIIT)
  • C. Department of Economic Affairs, Ministry of Finance
  • D. Ministry of External Affairs

Q2. The India-UK CETA was formally signed in London by Piyush Goyal and Jonathan Reynolds in which year?

  • A. 2025
  • B. 2026
  • C. 2024
  • D. 2023

Q3. The customs notifications and operational process for claiming duty concessions under India's tariff-reduction schedule in CETA are rolled out by which body?

  • A. Central Board of Indirect Taxes and Customs (CBIC)
  • B. Directorate General of Foreign Trade (DGFT)
  • C. Central Board of Direct Taxes (CBDT)
  • D. Directorate General of Trade Remedies (DGTR)

Q4. With respect to tariff liberalisation under the India-UK CETA, consider the following statements: 1. The UK eliminates tariffs on about 99% of its tariff lines covering nearly 100% of trade value. 2. India has opened about 89.5% of its tariff lines under the agreement. 3. The UK's tariff offer covers nearly the entire trade basket of Indian exports. 4. India grants immediate duty-free access to 89.5% of UK exports at the moment of entry into force. Which of the statements given above is/are correct?

  1. The UK eliminates tariffs on about 99% of its tariff lines covering nearly 100% of trade value.
  2. India has opened about 89.5% of its tariff lines under the agreement.
  3. The UK's tariff offer covers nearly the entire trade basket of Indian exports.
  4. India grants immediate duty-free access to 89.5% of UK exports at the moment of entry into force.
  • A. 1, 2 and 3
  • B. 1 and 3 only
  • C. 2, 3 and 4
  • D. 1, 2 and 4

Q5. The negotiation of India's free trade agreements, including CETA, is led exclusively by which of the following?

  • A. Ministry of Commerce and Industry
  • B. Ministry of External Affairs
  • C. Ministry of Finance
  • D. NITI Aayog

Q6. Within the Ministry of Commerce and Industry, which single department serves as the lead nodal arm for negotiating and implementing the India-UK CETA?

  • A. Department of Commerce
  • B. Department for Promotion of Industry and Internal Trade (DPIIT)
  • C. Department of Revenue
  • D. Directorate General of Foreign Trade under DPIIT

Q7. The Double Contribution Convention (DCC) accompanying the CETA is administered in India as part of the trade package under which nodal ministry?

  • A. Ministry of Commerce and Industry
  • B. Ministry of Labour and Employment
  • C. Ministry of External Affairs
  • D. Ministry of Corporate Affairs

Q8. Under the Double Contribution Convention, the exemption from double social security contributions for Indian professionals on temporary UK assignments has been extended to a maximum period of:

  • A. 5 years
  • B. 3 years
  • C. 4 years
  • D. 10 years

Q9. As per the Department of Commerce, India's operational network of free trade agreements now numbers how many?

  • A. Nine
  • B. Thirty-eight
  • C. Fourteen
  • D. Six

Q10. Which of India's trade agreements is described as its first Comprehensive Economic Partnership Agreement in the Middle East and North Africa (MENA) region?

  • A. India-UAE CEPA
  • B. India-Australia ECTA
  • C. India-EFTA TEPA
  • D. India-UK CETA

Q11. Under the CETA, UK-built passenger vehicles are granted concessional access through a 'tariff-rate quota (TRQ)'. In this context, a tariff-rate quota means:

  • A. A specified quantity of imports allowed each year at concessional duty, with imports beyond the quota attracting the normal tariff
  • B. Complete and immediate elimination of tariffs on all imported vehicles
  • C. An absolute cap that prohibits any imports above a fixed number of units
  • D. A single uniform flat duty applied to all imported vehicles irrespective of quantity

Q12. Regarding the India-UK economic relationship, consider the following statements: 1. Current bilateral trade between India and the UK stands at nearly USD 56 billion. 2. The two countries aim to double their bilateral trade by 2030. 3. Under CETA, India gains zero-duty access on about 99% of its exports to the UK. 4. The CETA and the DCC entered into force on 24 July 2025. Which of the statements given above is/are correct?

  1. Current bilateral trade between India and the UK stands at nearly USD 56 billion.
  2. The two countries aim to double their bilateral trade by 2030.
  3. Under CETA, India gains zero-duty access on about 99% of its exports to the UK.
  4. The CETA and the DCC entered into force on 24 July 2025.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 3 and 4