UPSC Prelims Practice Questions — India and the European Union Conclude Free Trade Agreement Negotiations on Financial Services
Q1. The conclusion of negotiations on the Financial Services chapter of the India–EU Free Trade Agreement was formally announced by which one of the following?
- A. Ministry of Finance
- B. Ministry of Commerce and Industry
- C. Ministry of External Affairs
- D. Reserve Bank of India
Q2. With reference to India's market-access offer in the Financial Services chapter of the India–EU FTA, consider the following statements:
1. EU banks may establish up to 15 bank branches in India, phased over a four-year period.
2. The earlier GATS commitment had capped this at 10 branches.
3. India's offer enhances the Foreign Direct Investment limit in the banking sector to 74%.
Which of the statements given above is/are correct?
- EU banks may establish up to 15 bank branches in India, phased over a four-year period.
- The earlier GATS commitment had capped this at 10 branches.
- India's offer enhances the Foreign Direct Investment limit in the banking sector to 74%.
- A. 1 only
- B. 1 and 3 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q3. India–EU trade agreement negotiations were suspended in 2013 and formally re-launched in June 2022. This represented a gap of approximately how many years?
- A. 5 years
- B. 7 years
- C. 9 years
- D. 15 years
Q4. Consider the following milestones in the evolution of the India–EU trade agreement and their years:
1. Launch of the Bilateral Trade and Investment Agreement (BTIA) negotiations — 2007
2. Suspension of negotiations — 2013
3. Re-launch of negotiations — June 2022
4. Announcement of overall conclusion of the FTA — January 2025
Which of the pairs given above is/are NOT correctly matched?
- Launch of the Bilateral Trade and Investment Agreement (BTIA) negotiations — 2007
- Suspension of negotiations — 2013
- Re-launch of negotiations — June 2022
- Announcement of overall conclusion of the FTA — January 2025
- A. 1 and 3
- B. 2 and 4
- C. 1, 2 and 4
- D. 4 only
Q5. The EU–India Trade and Technology Council (TTC) is structured around how many working groups?
- A. Two
- B. Three
- C. Four
- D. Five
Q6. India–EU bilateral trade in services was valued at approximately how much in 2024?
- A. USD 53 billion
- B. USD 83 billion
- C. USD 103 billion
- D. USD 136 billion
Q7. The India–EU bilateral merchandise trade figure of approximately USD 136.54 billion, cited around the conclusion of the FTA, pertains to which period?
- A. Financial Year 2023-24
- B. Financial Year 2024-25
- C. Financial Year 2025-26
- D. Calendar year 2026
Q8. As noted in the Financial Services chapter of the India–EU FTA, how many Indian banks currently maintain branches in the European Union?
- A. Two
- B. Three
- C. Five
- D. Seventeen
Q9. Which one of the following is the only Indian bank that maintains a representative office in the European Union, as referenced in the FTA's Financial Services chapter?
- A. State Bank of India
- B. Bank of Baroda
- C. Bank of India
- D. Punjab National Bank
Q10. In the context of India's recent trade agreements, the pact signed with the United Kingdom — 'CETA' — stands for which one of the following?
- A. Comprehensive Economic and Trade Agreement
- B. Comprehensive Economic Partnership Agreement
- C. Economic Cooperation and Trade Agreement
- D. Comprehensive Trade and Economic Alliance
Q11. Under the WTO's General Agreement on Trade in Services (GATS), which is relevant to commitments such as permitting foreign bank branches, trade in services is classified into how many modes of supply?
- A. Two
- B. Three
- C. Four
- D. Five