UPSC Prelims Practice Questions — Union Minister of Commerce and Industry Shri Piyush Goyal to Visit Brussels for Crucial India-EU FTA Talks

Q1. In the context of the agreements negotiated alongside the India-EU FTA, the standalone Investment Protection Agreement (IPA) is best described as an instrument that:

  • A. provides a legal framework to protect cross-border investments and enhance the confidence of investors between India and the EU
  • B. sets binding tariff-reduction schedules for goods traded between India and the EU
  • C. establishes a common external tariff applied jointly by India and the EU member states
  • D. governs the mutual recognition of professional qualifications under Mode-4 services

Q2. As part of its economic engagement re-launched in June 2022, India and the EU pursued their negotiations as how many separate agreements on parallel tracks?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q3. The figure of USD 136.54 billion cited for India-EU relations in 2024-25 refers to:

  • A. the total two-way (bilateral) trade in goods between India and the EU
  • B. India's merchandise exports to the EU alone
  • C. India's merchandise trade deficit with the EU
  • D. the combined India-EU trade in both goods and services

Q4. According to 2024-25 trade data, which one of the following correctly describes the EU's position in India's merchandise trade?

  • A. The EU is India's largest trading partner in goods
  • B. The EU is India's second largest goods trading partner after the United States
  • C. The EU is India's third largest goods trading partner after the United States and China
  • D. The EU is India's largest source of merchandise imports but only its fourth largest export destination

Q5. In the EU's institutional framework, describing the Common Commercial Policy as an 'exclusive competence' of the Union means that:

  • A. only the EU, through its institutions, and not individual member states, may legislate and conclude international trade agreements in that area
  • B. trade agreements require unanimous ratification by all 27 national parliaments before they can be signed
  • C. each member state retains the right to negotiate its own bilateral trade deals in parallel with the EU
  • D. trade competence is shared equally between the European Commission and the Council of the EU

Q6. India's Union Ministry of Commerce and Industry is organised into how many departments?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q7. Within India's Ministry of Commerce and Industry, the responsibility for formulating the Foreign Trade Policy and conducting bilateral trade negotiations such as the India-EU FTA rests with:

  • A. the Department of Commerce
  • B. the Department for Promotion of Industry and Internal Trade (DPIIT)
  • C. the Department of Economic Affairs
  • D. the Directorate General of Foreign Trade, acting independently of any department