UPSC Prelims Practice Questions — India’s Trade Partnerships Powering Global Integration and Growth
Q1. In the context of India's recent trade diplomacy, the deal popularly described as the "Mother of All Deals" refers to which one of the following?
- A. The India–European Union Free Trade Agreement concluded in January 2026
- B. The India–United Kingdom Comprehensive Economic and Trade Agreement signed in July 2025
- C. The India–GCC comprehensive FTA whose negotiations were launched in February 2026
- D. The wholly renegotiated India–ASEAN Trade in Goods Agreement covering all sectors without exception
Q2. At which of the following events were negotiations on the India–European Union Free Trade Agreement concluded?
- A. The 16th India–EU Summit held in New Delhi on 27 January 2026
- B. The 16th India–EU Summit held in Brussels on 27 January 2026
- C. The 15th India–EU Summit held in New Delhi in 2025
- D. The relaunch meeting of June 2022 held in Brussels
Q3. The India–UK Comprehensive Economic and Trade Agreement (CETA) was concluded following how many rounds of negotiations?
- A. 12 rounds
- B. 13 rounds
- C. 14 rounds
- D. 16 rounds
Q4. With reference to the India–UK CETA, consider the following statements:
1. Its negotiations were concluded on 6 May 2025, whereas the agreement was formally signed later, on 24 July 2025.
2. It was signed in London by Commerce Minister Piyush Goyal and the UK Secretary of State for Business and Trade, Jonathan Reynolds.
3. The agreement entered into force on the very day it was signed in July 2025.
Which of the statements given above is/are correct?
- Its negotiations were concluded on 6 May 2025, whereas the agreement was formally signed later, on 24 July 2025.
- It was signed in London by Commerce Minister Piyush Goyal and the UK Secretary of State for Business and Trade, Jonathan Reynolds.
- The agreement entered into force on the very day it was signed in July 2025.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q5. Which one of the following is regarded as India's first major modern Free Trade Agreement?
- A. India–Sri Lanka Free Trade Agreement
- B. India–ASEAN Trade in Goods Agreement
- C. India–Thailand Free Trade Agreement
- D. India–Japan Comprehensive Economic Partnership Agreement
Q6. With reference to the chronology of India's trade agreements, consider the following statements:
1. The India–Sri Lanka FTA was signed earlier than the India–ASEAN Trade in Goods Agreement came into effect.
2. The India–UAE CEPA and the India–Australia ECTA were both concluded in 2022.
3. The India–Australia ECTA preceded the India–Sri Lanka FTA.
Which of the statements given above is/are correct?
- The India–Sri Lanka FTA was signed earlier than the India–ASEAN Trade in Goods Agreement came into effect.
- The India–UAE CEPA and the India–Australia ECTA were both concluded in 2022.
- The India–Australia ECTA preceded the India–Sri Lanka FTA.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q7. The negotiation of India's recent Free Trade Agreements, such as those with Oman and New Zealand, is operationalised on India's behalf by which one of the following?
- A. The Department of Commerce, Ministry of Commerce and Industry
- B. The Department of Economic Affairs, Ministry of Finance
- C. The Ministry of External Affairs
- D. The Department for Promotion of Industry and Internal Trade (DPIIT)
Q8. With reference to India's recently concluded trade agreements, consider the following statements:
1. The India–Oman CEPA was signed in December 2025.
2. The India–New Zealand FTA was announced in December 2025.
3. Under the India–Oman CEPA, Oman for the first time offered Mode 4 commitments on the temporary movement of professionals.
4. The India–New Zealand FTA is described as one of India's longest-negotiated trade agreements.
Which of the statements given above is/are NOT correct?
- The India–Oman CEPA was signed in December 2025.
- The India–New Zealand FTA was announced in December 2025.
- Under the India–Oman CEPA, Oman for the first time offered Mode 4 commitments on the temporary movement of professionals.
- The India–New Zealand FTA is described as one of India's longest-negotiated trade agreements.
- A. 1 only
- B. 2 and 3 only
- C. 4 only
- D. 1 and 4 only
Q9. In the context of India's ongoing FTA negotiations, the "Terms of Reference (ToR)", such as the one signed with Israel in November 2025, is best described as which one of the following?
- A. A framework establishing the scope and structure of the negotiations to be undertaken
- B. The final, legally binding text of the concluded trade agreement
- C. A ratified schedule of tariff concessions already exchanged by the two sides
- D. A binding dispute-settlement ruling issued under an existing agreement
Q10. With reference to India's standing in the diversity of trade partnerships, consider the following statements:
1. India ranks third among Global South economies on the diversity index of trade partnerships.
2. India's diversity index score is higher than that of all Global North countries.
3. This ranking is drawn from a report published by the World Trade Organization.
Which of the statements given above is/are correct?
- India ranks third among Global South economies on the diversity index of trade partnerships.
- India's diversity index score is higher than that of all Global North countries.
- This ranking is drawn from a report published by the World Trade Organization.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q11. Which one of the following is the nodal department responsible for negotiating India's Free Trade Agreements?
- A. The Department of Commerce under the Ministry of Commerce and Industry
- B. The Department for Promotion of Industry and Internal Trade (DPIIT)
- C. The Ministry of External Affairs
- D. NITI Aayog
Q12. As part of its largest-ever FTA expansion aligned with the Viksit Bharat vision, consider the following agreements:
1. India–UK CETA
2. India–Oman CEPA
3. India–New Zealand FTA
4. India–Sri Lanka FTA
Which of the above is/are correctly identified as concluded or signed by India during FY 2025-26?
- India–UK CETA
- India–Oman CEPA
- India–New Zealand FTA
- India–Sri Lanka FTA
- A. 1 and 3 only
- B. 2 and 4 only
- C. 1, 2 and 3 only
- D. 1, 2, 3 and 4