UPSC Prelims Practice Questions — India and Gulf Cooperation Council Sign Terms of Reference for India–GCC Free Trade Agreement

Q1. In the context of the India–GCC Free Trade Agreement signed on 5 February 2026, the 'Terms of Reference (ToR)' is best described as which one of the following?

  • A. A binding trade treaty that immediately grants tariff concessions and requires parliamentary ratification
  • B. A framework document that defines the scope and modalities to guide the forthcoming FTA negotiations
  • C. A dispute-settlement charter modelled on the WTO's appellate mechanism
  • D. A rules-of-origin protocol certifying preferential status for goods already in trade

Q2. The Terms of Reference for the India–GCC FTA were signed on behalf of India by an official holding which designation?

  • A. Commerce Secretary, Department of Commerce
  • B. Additional Secretary and Chief Negotiator, Department of Commerce
  • C. Foreign Secretary, Ministry of External Affairs
  • D. Union Minister of State for Commerce and Industry

Q3. The Charter that formally established the Gulf Cooperation Council in 1981 was signed in which city?

  • A. Riyadh
  • B. Abu Dhabi
  • C. Manama
  • D. Kuwait City

Q4. With reference to the membership of the Gulf Cooperation Council, consider the following countries: 1. Oman 2. Iraq 3. Bahrain 4. Yemen Which of the above is/are correctly identified as member states of the GCC?

  1. Oman
  2. Iraq
  3. Bahrain
  4. Yemen
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 2 and 3
  • D. 1, 3 and 4

Q5. Before the GCC's 2011 global suspension of Free Trade Agreement talks, how many rounds of India–GCC FTA negotiations had been held?

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

Q6. On the Gulf side, the India–GCC FTA negotiations are conducted through which of the following bodies?

  • A. The Secretariat General of the Gulf Cooperation Council
  • B. The League of Arab States
  • C. The Organisation of Islamic Cooperation
  • D. The GCC Supreme Council of Rulers

Q7. With reference to India–GCC trade in FY 2024-25, consider the following statements: 1. India's imports from the GCC exceeded its exports to the GCC. 2. The GCC accounted for more than 15% of India's global trade. 3. India recorded a trade surplus with the GCC. Which of the statements given above is/are correct?

  1. India's imports from the GCC exceeded its exports to the GCC.
  2. The GCC accounted for more than 15% of India's global trade.
  3. India recorded a trade surplus with the GCC.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. The description of the GCC in FY 2024-25 as India's 'largest trading-partner bloc' most precisely means which one of the following?

  • A. The GCC is the single largest individual country partner in India's trade
  • B. Among groupings of countries, the GCC bloc had the biggest combined share of India's total trade
  • C. The GCC is the only economic bloc with which India conducts trade
  • D. The GCC accounts for a majority — over 50% — of India's global trade

Q9. The GCC being described as the 'ninth largest globally' in the context of its economic profile refers to which one of the following?

  • A. Its combined GDP of about USD 2.3 trillion ranks ninth among world economies
  • B. Its combined population of about 61.5 million ranks ninth in the world
  • C. It is the ninth largest crude-oil exporting bloc in the world
  • D. It is India's ninth largest source of foreign direct investment

Q10. Which of the following statements about the ministry that negotiates India's trade agreements such as the India–EFTA TEPA and the India–GCC FTA is correct?

  • A. They are negotiated by the Department of Commerce under the Ministry of Commerce and Industry
  • B. They are negotiated exclusively by the Ministry of External Affairs
  • C. They are negotiated solely by the Department of Economic Affairs, Ministry of Finance
  • D. They are negotiated only by NITI Aayog on behalf of the government

Q11. With reference to the India–GCC FTA Terms of Reference and India's broader trade-negotiation practice, consider the following statements: 1. The signing of the ToR by itself triggers parliamentary ratification of the trade agreement. 2. The Chief Negotiator mechanism used for the India–GCC FTA mirrors the approach India adopted in the EFTA TEPA and UK FTA talks. 3. The ToR defines the scope and modalities of negotiations rather than constituting the final trade agreement. Which of the statements given above is/are correct?

  1. The signing of the ToR by itself triggers parliamentary ratification of the trade agreement.
  2. The Chief Negotiator mechanism used for the India–GCC FTA mirrors the approach India adopted in the EFTA TEPA and UK FTA talks.
  3. The ToR defines the scope and modalities of negotiations rather than constituting the final trade agreement.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3