UPSC Prelims Practice Questions — FREQUENTLY ASKED QUESTIONS INDIA AND EUROPEAN UNION FREE TRADE AGREEMENT

Q1. The India–EU Free Trade Agreement, whose negotiations concluded on 27 January 2026, is frequently described as a landmark. Which one of the following correctly states its principal distinction among India's trade agreements?

  • A. It is India's largest free trade agreement by bilateral trade volume
  • B. It is the first free trade agreement India has ever signed with a European country
  • C. It is India's first free trade agreement to eliminate 100% of tariff lines from day one
  • D. It is the first Indian free trade agreement to contain an intellectual property chapter

Q2. In the context of the India–EU Free Trade Agreement, the announcement on 27 January 2026 that negotiations had been 'concluded' most precisely means which one of the following?

  • A. The two sides reached agreement on the text of the deal, which must still be legally scrubbed, signed and ratified before it enters into force
  • B. The agreement entered into force and preferential tariffs became applicable immediately
  • C. Both the Indian Parliament and the European Parliament had already ratified the agreement
  • D. The two sides formally re-launched negotiations on the agreement after a long pause

Q3. On the Indian side, the negotiation and operationalisation of the India–EU Free Trade Agreement is led by which one of the following?

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

Q4. Consider the following statements regarding India–EU trade figures cited around the FTA's conclusion: 1. India's bilateral merchandise trade with the EU in 2024-25 stood at about USD 136.54 billion. 2. India's merchandise exports to the EU in 2024-25 (about USD 75.85 billion) exceeded its merchandise imports from the EU (about USD 60.68 billion). 3. India's services trade with the EU in 2024 (about USD 83.10 billion) was larger than its bilateral merchandise trade with the EU in 2024-25. Which of the statements given above is/are correct?

  1. India's bilateral merchandise trade with the EU in 2024-25 stood at about USD 136.54 billion.
  2. India's merchandise exports to the EU in 2024-25 (about USD 75.85 billion) exceeded its merchandise imports from the EU (about USD 60.68 billion).
  3. India's services trade with the EU in 2024 (about USD 83.10 billion) was larger than its bilateral merchandise trade with the EU in 2024-25.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. The India–EU FTA is stated to provide preferential market access for 'more than 99% of India's exports to the EU by trade value.' Which one of the following correctly interprets this statement?

  • A. Preferences cover goods that account for over 99% of the value of India's exports to the EU, though not necessarily 99% of all tariff lines
  • B. Every tariff line covering Indian goods will attract zero duty from the very first day
  • C. All Indian goods will be entirely exempt from EU technical and regulatory standards
  • D. India will impose absolutely no duties whatsoever on any import from the EU

Q6. Under the India–EU FTA, the EU's day-one (immediate) duty elimination applies to 70.4% of tariff lines. These lines account for the single largest slice of India's exports to the EU — approximately what share of India's exports to the EU by value?

  • A. 60.7%
  • B. 70.4%
  • C. 90.7%
  • D. 99%

Q7. With reference to the Sustainable Food Systems (SFS) chapter of the India–EU FTA, consider the following: 1. It is described as a first-of-its-kind cooperation chapter, not previously part of any Indian FTA. 2. It seeks cooperation across the food chain from production to consumption, including reducing food loss. 3. It addresses antimicrobial resistance and the responsible use of antibiotics in food production. 4. It imposes binding tariff reductions on all agricultural products traded between the parties. Which of the above are correctly identified as features of the SFS chapter?

  1. It is described as a first-of-its-kind cooperation chapter, not previously part of any Indian FTA.
  2. It seeks cooperation across the food chain from production to consumption, including reducing food loss.
  3. It addresses antimicrobial resistance and the responsible use of antibiotics in food production.
  4. It imposes binding tariff reductions on all agricultural products traded between the parties.
  • A. 1 and 2 only
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1, 3 and 4

Q8. Which one of the following chapters of the India–EU FTA is highlighted as a first-of-its-kind cooperation chapter, representing a novel dimension not featured in India's earlier free trade agreements?

  • A. Sustainable Food Systems chapter
  • B. Trade and Sustainable Development chapter
  • C. Rules of Origin chapter
  • D. Intellectual Property chapter

Q9. The India–EU FTA is India's largest trade agreement partly because the EU negotiates as a single customs union. How many member states does this bloc comprise?

  • A. 25
  • B. 26
  • C. 27
  • D. 28

Q10. The India–EU Trade and Technology Council (TTC), which provided institutional momentum to the FTA, holds which one of the following distinctions for India?

  • A. It is the first Trade and Technology Council India has established with any partner
  • B. It is India's first-ever bilateral strategic partnership
  • C. It is the first free trade agreement India concluded with the EU
  • D. It is the oldest institutional trade forum between India and the EU

Q11. With reference to the structure of the India–EU FTA, consider the following: 1. Rules of Origin 2. Trade and Sustainable Development 3. Sustainable Food Systems 4. Common Agricultural Policy Which of the above are correctly identified as chapters contained in the India–EU FTA?

  1. Rules of Origin
  2. Trade and Sustainable Development
  3. Sustainable Food Systems
  4. Common Agricultural Policy
  • A. 1, 2 and 4
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1 and 4 only

Q12. With reference to India's recent free trade agreements, consider the following: 1. The India–EU FTA is India's largest free trade agreement by bilateral trade volume. 2. The India–EFTA Trade and Economic Partnership Agreement (TEPA) includes a target investment commitment of USD 100 billion. 3. The India–UK Comprehensive Economic and Trade Agreement (CETA) was signed in 2025. 4. The EFTA bloc that signed a trade pact with India consists of the 27 European Union member states. Which of the statements given above are correct?

  1. The India–EU FTA is India's largest free trade agreement by bilateral trade volume.
  2. The India–EFTA Trade and Economic Partnership Agreement (TEPA) includes a target investment commitment of USD 100 billion.
  3. The India–UK Comprehensive Economic and Trade Agreement (CETA) was signed in 2025.
  4. The EFTA bloc that signed a trade pact with India consists of the 27 European Union member states.
  • A. 1 and 4 only
  • B. 2, 3 and 4
  • C. 1, 2 and 3
  • D. 1, 3 and 4