UPSC Prelims Practice Questions — Union Minister for Commerce and Industry Shri Piyush Goyal and New Zealand Minister for Trade and Investment Mr. Todd McClay Lead Industry Engagement in Agra Ahead of India–New Zealand FTA Signing

Q1. With reference to the India–New Zealand Free Trade Agreement and India's other recent trade pacts, consider the following statements: Which of the statements given above is/are correct?

  1. Negotiations for the India–New Zealand FTA were launched in 2025, whereas the India–EFTA TEPA had already been signed in 2024.
  2. Like the India–UK CETA, the India–New Zealand FTA was signed in the year 2025.
  3. The India–New Zealand FTA negotiations were concluded within about nine months of their launch.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q2. Negotiations for the India–New Zealand Free Trade Agreement were formally launched in March 2025 during the official India visit of which New Zealand leader?

  • A. Jacinda Ardern
  • B. Chris Hipkins
  • C. Christopher Luxon
  • D. Winston Peters

Q3. Under the India–New Zealand FTA, in how many services sectors did New Zealand make market access commitments to India?

  • A. 95 sectors
  • B. 100 sectors
  • C. 118 sectors
  • D. 139 sectors

Q4. Which department of the Government of India served as the nodal agency that negotiated the India–New Zealand Free Trade Agreement?

  • A. Department for Promotion of Industry and Internal Trade
  • B. Department of Commerce
  • C. Department of Economic Affairs
  • D. Department of Revenue

Q5. Under the India–New Zealand FTA, what is the total value of investment that New Zealand has committed to facilitate into India over the next fifteen years?

  • A. USD 10 billion
  • B. USD 20 billion
  • C. USD 35 billion
  • D. USD 50 billion

Q6. In the India–New Zealand FTA, market access for products such as apples, kiwifruit and Manuka honey is managed through a 'Tariff Rate Quota (TRQ)'. What does a Tariff Rate Quota mean?

  • A. A specified quantity may be imported at a lower or zero duty, with a higher duty applying to imports beyond that quantity
  • B. All imports of the product are permitted duty-free without any quantity limit
  • C. Imports of the product are banned once a fixed value threshold is crossed
  • D. A fixed cash subsidy is paid to domestic producers to offset cheaper imports

Q7. Consider the following pairs of India's recent trade agreements and their year of signing: Which of the above pairs is/are correctly matched?

  1. India–UAE CEPA — 2022
  2. India–Australia ECTA — 2022
  3. India–EFTA TEPA — 2024
  4. India–UK CETA — 2024
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q8. India's recent economic partnership and free trade agreements — with the UAE, Australia, EFTA, the UK and New Zealand — are negotiated on India's behalf primarily under which Union ministry?

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

Q9. The pre-signing industry engagement at Agra highlighted labour-intensive Indian sectors set to gain improved, zero-duty market access to New Zealand under the FTA. Which of the following is/are NOT correctly identified as such an Indian export-gaining sector?

  1. Leather and footwear
  2. Textiles
  3. Pharmaceuticals
  4. Dairy products
  • A. 1 only
  • B. 2 and 3 only
  • C. 4 only
  • D. 3 and 4 only

Q10. With reference to the leather sector focus of the Agra industry engagement and the India–New Zealand FTA, consider the following statements: Which of the statements given above is/are correct?

  1. The USD 50 billion leather and footwear target comprises about USD 36 billion of domestic consumption and USD 14 billion of exports.
  2. Under the FTA, duties on Indian leather and footwear exports to New Zealand are reduced from 5 per cent to zero.
  3. Agra is identified as a major leather cluster, and the USD 50 billion leather target is set for the year 2027.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q11. In which year did India and New Zealand launch their Free Trade Agreement negotiations, coinciding with Prime Minister Christopher Luxon's first official visit to India in his current capacity?

  • A. 2023
  • B. 2024
  • C. 2025
  • D. 2026

Q12. Consider the following pairs relating to the institutional structure of the Ministry of Commerce and Industry: Which of the above pairs is NOT correctly matched?

  1. Department of Commerce — a department under the Ministry of Commerce and Industry
  2. Department for Promotion of Industry and Internal Trade (DPIIT) — a department under the Ministry of Commerce and Industry
  3. Open Network for Digital Commerce (ONDC) — an initiative under DPIIT
  4. Gati Shakti National Master Plan — an initiative under the Ministry of Finance
  • A. 1 only
  • B. 4 only
  • C. 3 and 4 only
  • D. 2 only