UPSC Prelims Practice Questions — The India & New Zealand FTA, a major boost to Textile Sector

Q1. With reference to the timeline of the India–New Zealand Free Trade Agreement (FTA), consider the following statements:

1. The negotiations for the FTA were launched on 16 March 2025 during the visit of New Zealand Prime Minister Christopher Luxon to India.
2. The negotiations were concluded on 22 December 2025 after five formal rounds of talks and several inter-sessions.
3. The FTA was signed on 27 April 2026 at Hyderabad House, New Delhi.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Q2. With reference to the India–New Zealand Free Trade Agreement signed in 2026, which of the following statements are NOT correct?

1. The Agreement was signed by Commerce Minister Piyush Goyal and New Zealand's Trade and Investment Minister Todd McClay.
2. Negotiations on the Agreement were formally launched in March 2024.
3. The signing ceremony was held at Bharat Mandapam in New Delhi.
4. Negotiations on the Agreement were concluded in December 2024.

• A. 1 and 3
• B. 2 and 4
• C. 1, 2 and 4
• D. 3 only

Q3. Which one of the following is the nodal Union Ministry of the Government of India for negotiating and signing the India–New Zealand Free Trade Agreement (2026)?

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

Q4. Under the India–New Zealand Free Trade Agreement (2026), which of the following items are NOT placed in India's exclusion list of tariff lines? 1. Cheese 2. Sheep meat 3. Almonds 4. Wool

1. Cheese
2. Sheep meat
3. Almonds
4. Wool

• A. 1 and 3 only
• B. 2 and 4 only
• C. 1, 2 and 4
• D. 3 and 4 only

Q5. In the context of the India–New Zealand FTA (2026), the figure of '70.03% of tariff lines' refers to which one of the following?

• A. The share of India's tariff lines on which India has agreed to liberalise duties for imports from New Zealand
• B. The share of New Zealand's tariff lines opened duty-free for Indian exports from day one
• C. The share of bilateral merchandise trade value covered by the agreement
• D. The share of India's textile and apparel tariff lines liberalised under the FTA

Q6. Which of the following is the nodal Indian agency that negotiated and signed the India–New Zealand Free Trade Agreement (2026)?

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

Q7. Among New Zealand's global imports in the textile value chain that India seeks to tap under the India–New Zealand FTA (2026), which one of the following categories represents the LARGEST import market by value?

• A. Apparel
• B. Textiles (yarns and fabrics)
• C. Made-ups
• D. Carpets

Q8. With reference to the India–New Zealand Free Trade Agreement (2026), which of the following product categories was NOT among those on which New Zealand levied Most-Favoured-Nation (MFN) duties (in the 5–10% range) prior to the Agreement?

1. Wool
2. Man-made fibres (MMF)
3. Carpets
4. Almonds

• A. 1 only
• B. 2 and 3 only
• C. 4 only
• D. 1, 2 and 3 only

Q9. Which Union Ministry, as the sectoral implementation ministry, issued the official note describing the India–New Zealand Free Trade Agreement (2026) as a 'major boost' to the apparel, home textiles and handloom segments?

• A. Ministry of Commerce and Industry
• B. Ministry of Textiles
• C. Ministry of Micro, Small and Medium Enterprises
• D. Ministry of External Affairs

Q10. Which one of the following is the nodal Indian department/ministry that negotiates and operationalises India's recent Free Trade Agreements such as the India-UAE CEPA, India-Australia ECTA and India-New Zealand FTA?

• A. Department of Economic Affairs, Ministry of Finance
• B. Department of Commerce, Ministry of Commerce & Industry
• C. Department of Revenue (CBIC), Ministry of Finance
• D. Economic Diplomacy and States Division, Ministry of External Affairs

Q11. Consider the following European countries: 1. Switzerland 2. Norway 3. Sweden 4. Liechtenstein Which of the above are NOT signatories of the India-EFTA Trade and Economic Partnership Agreement (TEPA), 2024?

1. Switzerland
2. Norway
3. Sweden
4. Liechtenstein

• A. 1 and 3 only
• B. 3 only
• C. 2 and 4 only
• D. 1, 2 and 4 only

Q12. With reference to India's recent Free Trade Agreements concluded in the run-up to the India-New Zealand FTA (2026), consider the following statements: 1. Both the India-UAE CEPA and the India-Australia ECTA entered into force in the calendar year 2022. 2. The India-EFTA Trade and Economic Partnership Agreement was signed in 2024 but came into force only in 2025. 3. The India-UK Comprehensive Economic and Trade Agreement (CETA) was signed in 2024, prior to the conclusion of India-New Zealand FTA negotiations. Which of the statements given above is/are correct?

1. Both the India-UAE CEPA and the India-Australia ECTA entered into force in the calendar year 2022.
2. The India-EFTA Trade and Economic Partnership Agreement was signed in 2024 but came into force only in 2025.
3. The India-UK Comprehensive Economic and Trade Agreement (CETA) was signed in 2024, prior to the conclusion of India-New Zealand FTA negotiations.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 only
• D. 1, 2 and 3

Q13. Consider the following statements regarding New Zealand and the Pacific Islands Forum (PIF): 1. Australia and New Zealand are the only members of the Pacific Islands Forum that are classified as developed economies. 2. All members of the Pacific Islands Forum are sovereign states recognised by the United Nations as such. 3. The Cook Strait separates New Zealand's North Island from the Australian mainland. Which of the statements given above is/are correct?

1. Australia and New Zealand are the only members of the Pacific Islands Forum that are classified as developed economies.
2. All members of the Pacific Islands Forum are sovereign states recognised by the United Nations as such.
3. The Cook Strait separates New Zealand's North Island from the Australian mainland.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q14. The Forum for India-Pacific Islands Cooperation (FIPIC) was launched in November 2014 during a visit by the Prime Minister of India to which one of the following Pacific Island countries?

• A. Papua New Guinea
• B. Fiji
• C. Samoa
• D. Tonga

Q15. Within the Government of India, which one of the following is the nodal entity that handles India's engagement with the Pacific Islands Forum as a Dialogue Partner and operationalises the Indo-Pacific Oceans Initiative (IPOI)?

• A. Indo-Pacific Division, Ministry of External Affairs
• B. Department of Commerce, Ministry of Commerce and Industry
• C. Integrated Defence Staff, Ministry of Defence
• D. Sagarmala Division, Ministry of Ports, Shipping and Waterways

Q16. With reference to the India–New Zealand Free Trade Agreement signed in April 2026, match List I with List II and select the correct answer using the code given below.

• A. A-4, B-1, C-3, D-2
• B. A-4, B-3, C-1, D-2
• C. A-2, B-1, C-3, D-4
• D. A-4, B-1, C-2, D-3

Q17. With reference to the investment and services architecture of the India–New Zealand Free Trade Agreement (2026), consider the following statements:

1. New Zealand has committed to facilitate USD 20 billion of investments into India over a fifteen-year period.
2. The Agreement contains a Rebalancing Clause that provides a framework to address any shortfall in the delivery of the investment commitment.
3. Under the Agreement, India has obtained a Temporary Employment Entry Visa pathway for Indian professionals with a quota of 10,000 visas at any given time.
4. New Zealand has offered services market access in 139 sectors and MFN treatment in 118 sectors.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1, 3 and 4
• D. 1, 2 and 4

Q18. Under the India–New Zealand Free Trade Agreement signed in April 2026, New Zealand's commitment to facilitate USD 20 billion of investment into India over fifteen years has been explicitly aligned by the Government of India with which one of the following flagship initiatives?

• A. Digital India
• B. Skill India Mission
• C. Make in India
• D. Startup India

Q19. With reference to the Production Linked Incentive (PLI) Scheme for Textiles, which one of the following is the nodal Ministry for its implementation?

• A. Ministry of Commerce and Industry
• B. Ministry of Textiles
• C. Department for Promotion of Industry and Internal Trade (DPIIT)
• D. Ministry of Micro, Small and Medium Enterprises

Q20. With reference to the PM MITRA (Pradhan Mantri Mega Integrated Textile Region and Apparel) Parks Scheme, consider the following States:

1. Odisha
2. Madhya Pradesh
3. Andhra Pradesh
4. Karnataka

• A. 2 and 4 only
• B. 1, 2 and 3
• C. 1 and 4 only
• D. 2, 3 and 4

Q21. Which one of the following is the first PM MITRA Park to be inaugurated by the Prime Minister?

• A. Dhar, Madhya Pradesh
• B. Virudhunagar, Tamil Nadu
• C. Warangal, Telangana
• D. Amravati, Maharashtra