UPSC Prelims Practice Questions — FACTSHEET

Q1. With reference to the India–EU Free Trade Agreement concluded in January 2026, consider the following statements. Which of the above is/are correctly identified?

  1. The pact binds a combined market of about USD 24 trillion serving nearly 2 billion people.
  2. With this agreement, the EU becomes India's 22nd FTA partner.
  3. EU tariff concessions under the agreement cover about 97% of tariff lines.
  4. India has offered immediate duty elimination on 100% of its tariff lines to the EU.
  • A. 1, 2 and 3
  • B. 1 and 4
  • C. 2, 3 and 4
  • D. 3 and 4 only

Q2. In the context of the India–EU Free Trade Agreement, the European Union is described as the world's which one of the following?

  • A. Largest economy
  • B. 2nd largest economy
  • C. 3rd largest economy
  • D. 4th largest economy

Q3. The India–EU FTA was announced at the 16th India–EU Summit (January 2026). Who among the following holds the office of President of the European Commission?

  • A. Ursula von der Leyen
  • B. António Costa
  • C. Roberta Metsola
  • D. Kaja Kallas

Q4. The two EU Presidents travelled to India in January 2026 on a 'State Visit'. Which one of the following best describes what a State Visit denotes?

  • A. The highest category of diplomatic visit, undertaken by a foreign head of state (or its equivalent) at the formal invitation of the host, involving full ceremonial honours
  • B. Any official visit undertaken solely by a foreign trade minister to sign a commercial agreement
  • C. A visit that can only be undertaken by a reigning monarch and never by an elected representative
  • D. A private, unofficial visit by a foreign dignitary conducted without any ceremonial protocol

Q5. With reference to the negotiating history of the India–EU trade talks, consider the following statements. Which of the statements given above is/are correct?

  1. The predecessor framework was the Broad-based Trade and Investment Agreement (BTIA), first launched in 2007.
  2. The BTIA talks stalled in 2013 when India withdrew from the negotiations.
  3. The FTA negotiations were formally re-launched in June 2022, about nine years after the 2013 stall.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q6. In the context of the earlier India–EU trade negotiations, the abbreviation 'BTIA' stands for which one of the following?

  • A. Broad-based Trade and Investment Agreement
  • B. Bilateral Trade and Investment Accord
  • C. Balanced Trade and Investment Arrangement
  • D. Broad-based Tariff and Investment Agreement

Q7. With reference to the structure of the India–EU FTA, consider the following statements. Which of the statements given above is/are correct?

  1. The agreement comprises 14 chapters, including a dedicated Trade and Sustainable Development (TSD) chapter.
  2. The Intellectual Property Rights chapter goes beyond TRIPS by requiring India to accede to the UPOV 1991 Convention on plant varieties.
  3. The agreement includes dedicated Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBT) chapters.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. The India–EU Free Trade Agreement is structured into how many chapters?

  • A. 12
  • B. 14
  • C. 16
  • D. 24

Q9. With reference to the India–EFTA TEPA as compared with the India–EU FTA, consider the following statements. Which of the statements given above is/are correct?

  1. The India–EFTA TEPA came into force on 1 October 2025, whereas the India–EU FTA negotiations were concluded in January 2026.
  2. EFTA's four member states are Switzerland, Norway, Sweden and Liechtenstein.
  3. The India–EFTA TEPA carries a binding commitment of USD 100 billion in investment over 15 years.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q10. In India's trade-agreement nomenclature, the India–UK deal signed in 2025 is a 'CETA'. The abbreviation CETA stands for which one of the following?

  • A. Comprehensive Economic and Trade Agreement
  • B. Comprehensive Economic and Technology Agreement
  • C. Common Economic and Trade Accord
  • D. Comprehensive Economic Trade Arrangement

Q11. With reference to the conclusion of Financial Services negotiations under the India–EU FTA, consider the following statements. Which of the above is/are NOT correct?

  1. Negotiations on Financial Services were concluded separately, finalised during a round held on 6 January 2026.
  2. In 2024, India exported about USD 700 million of financial services to the EU.
  3. In 2024, India imported about USD 600 million of financial services from the EU.
  4. The Financial Services chapter was concluded in 2024, ahead of the main FTA.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1 and 4
  • D. 4 only

Q12. The India–EU FTA delivers zero-duty market access for labour-intensive sectors such as textiles. Which one of the following is the nodal Union Ministry that negotiated and operationalises this agreement?

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