UPSC Prelims Practice Questions — India–EU Free Trade Agreement Concluded: A Strategic Breakthrough in India’s Global Trade Engagement

Q1. When negotiations between India and the European Union for a comprehensive trade pact were first launched in 2007, under what name were they formally initiated?

  • A. Broad-based Bilateral Trade and Investment Agreement (BTIA)
  • B. Comprehensive Economic Cooperation Agreement (CECA)
  • C. Trade and Economic Partnership Agreement (TEPA)
  • D. Comprehensive Economic and Trade Agreement (CETA)

Q2. With reference to the evolution of the India–EU Free Trade Agreement, consider the following statements: 1. The negotiations were originally launched in 2007 as the Broad-based Bilateral Trade and Investment Agreement. 2. The negotiations were suspended in 2013 over unresolved differences. 3. The negotiations were re-launched in Brussels in June 2022 after a multi-year hiatus. 4. The negotiations were finally concluded at the 16th India–EU Summit held in Brussels. Which of the above is/are NOT correct?

  1. The negotiations were originally launched in 2007 as the Broad-based Bilateral Trade and Investment Agreement.
  2. The negotiations were suspended in 2013 over unresolved differences.
  3. The negotiations were re-launched in Brussels in June 2022 after a multi-year hiatus.
  4. The negotiations were finally concluded at the 16th India–EU Summit held in Brussels.
  • A. 1 and 2
  • B. 3 only
  • C. 4 only
  • D. 2 and 4

Q3. Which Union ministry/department led India's side in negotiating the India–EU Free Trade Agreement whose conclusion was announced on 27 January 2026?

  • A. Department of Commerce, Ministry of Commerce & Industry
  • B. Department of Economic Affairs, Ministry of Finance
  • C. Economic Relations wing, Ministry of External Affairs
  • D. Department for Promotion of Industry and Internal Trade

Q4. The conclusion of the India–EU Free Trade Agreement in January 2026 was announced at which numbered edition of the India–EU Summit?

  • A. 14th
  • B. 15th
  • C. 16th
  • D. 17th

Q5. As highlighted in the official announcement of the India–EU FTA, India and the EU together account for approximately what share of global GDP?

  • A. About 10%
  • B. About 15%
  • C. About 25%
  • D. About 40%

Q6. In the context of the India–EU FTA, the headline figure that 'more than 99%' will gain preferential entry precisely refers to which of the following?

  • A. The share of India's exports, by trade value, that will get preferential access to the EU market
  • B. The share of the EU's total exports to India that will become duty-free
  • C. The share of global trade covered by the agreement
  • D. The proportion of India's population expected to benefit from the deal

Q7. With reference to the institutional framework of the India–EU FTA negotiations, consider the following statements: 1. The talks originally launched in 2007 were re-launched in June 2022 after a prolonged hiatus. 2. The June 2022 re-launch was led by Commerce Minister Piyush Goyal and EC Executive Vice-President Valdis Dombrovskis. 3. On the Indian side, the negotiations have throughout been led by the Ministry of External Affairs. Which of the statements given above is/are correct?

  1. The talks originally launched in 2007 were re-launched in June 2022 after a prolonged hiatus.
  2. The June 2022 re-launch was led by Commerce Minister Piyush Goyal and EC Executive Vice-President Valdis Dombrovskis.
  3. On the Indian side, the negotiations have throughout been led by the Ministry of External Affairs.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. Regarding the negotiating architecture of the India–EU FTA, consider the following statements: 1. India's chief negotiator was Commerce Minister Piyush Goyal. 2. The EU side was represented by the European Commission's Directorate-General for Trade (DG TRADE). 3. The 2022 re-launch of negotiations took place in Brussels. 4. The agreement was negotiated solely by each of the EU's 27 member states individually, and not by the European Commission. Which of the above is/are NOT correct?

  1. India's chief negotiator was Commerce Minister Piyush Goyal.
  2. The EU side was represented by the European Commission's Directorate-General for Trade (DG TRADE).
  3. The 2022 re-launch of negotiations took place in Brussels.
  4. The agreement was negotiated solely by each of the EU's 27 member states individually, and not by the European Commission.
  • A. 1 and 3
  • B. 2 only
  • C. 4 only
  • D. 3 and 4

Q9. One of the contentious issues in the India–EU trade talks concerned 'Mode 4' of services trade. In the framework of trade in services, 'Mode 4' refers to which of the following?

  • A. The temporary movement of natural persons (professionals) across borders to supply a service
  • B. The cross-border supply of a service without either party moving
  • C. The consumption of a service by a consumer travelling abroad
  • D. The supply of a service through a commercial presence established in another country

Q10. Among the demands that stalled the India–EU BTIA in 2013, one of the EU's principal offensive interests (alongside automobiles) was deep tariff cuts on which product category?

  • A. Wines and spirits (alcoholic beverages)
  • B. Dairy products
  • C. Pharmaceutical formulations
  • D. Cotton textiles

Q11. Which of the following trade agreements has been officially described as the largest free trade agreement India has ever concluded?

  • A. India–EU Free Trade Agreement
  • B. India–UAE Comprehensive Economic Partnership Agreement
  • C. India–UK Comprehensive Economic and Trade Agreement
  • D. India–EFTA Trade and Economic Partnership Agreement

Q12. With reference to the institutional relationship between India and the European Union, consider the following statements: 1. The India–EU Trade and Technology Council (TTC) was announced in April 2022, and its first ministerial meeting was held in New Delhi in May 2023. 2. The EU is a customs union of 27 member states, with the European Commission holding the competence to negotiate trade agreements on their behalf. 3. The second ministerial meeting of the India–EU TTC was held in New Delhi in February 2025. Which of the statements given above is/are correct?

  1. The India–EU Trade and Technology Council (TTC) was announced in April 2022, and its first ministerial meeting was held in New Delhi in May 2023.
  2. The EU is a customs union of 27 member states, with the European Commission holding the competence to negotiate trade agreements on their behalf.
  3. The second ministerial meeting of the India–EU TTC was held in New Delhi in February 2025.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3