UPSC Prelims Practice Questions — India and the United Kingdom Unleash a Next Generation Economic Corridor: Comprehensive Economic and Trade Agreement (CETA) and Agreement on Social Security Contributions Set to Enter into Force on 15th July 2026

Q1. In the context of the India–UK economic agreement that is set to enter into force in 2026, what does the term 'Double Contribution Convention' (DCC) precisely refer to?

• A. A bilateral protocol to avoid double taxation of dividends, interest and royalties flowing between India and the United Kingdom.
• B. An arrangement that exempts Indian workers on temporary assignment in the UK and their employers from paying UK social-security contributions for a specified period.
• C. A mutual-recognition framework under which pension contributions paid by Indian professionals in the UK are credited towards retirement benefits in India.
• D. A joint-financing mechanism under which India and the UK make matching contributions to a strategic investment fund linked to Vision 2035.

Q2. Under the India-UK Double Contribution Convention (DCC) signed alongside CETA, approximately how many Indian professionals/workers are expected to benefit from the exemption from UK social security contributions?

• A. Around 25,000
• B. Around 50,000
• C. Around 75,000
• D. Around 1,00,000

Q3. The India-UK Comprehensive Economic and Trade Agreement (CETA), along with the Double Contribution Convention (DCC), was formally signed in which year?

• A. 2022
• B. 2023
• C. 2024
• D. 2025

Q4. Which one of the following is the nodal Indian government department responsible for negotiating and implementing India's Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom?

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

Q5. In the context of WTO disciplines on regional trade agreements, the term 'Enabling Clause' refers to which one of the following?

• A. A 1979 GATT decision that permits preferential tariff treatment by developed countries to developing countries and regional arrangements among developing countries on a non-reciprocal basis
• B. A provision under GATT Article XXIV that allows the transition period for forming a free trade area to extend beyond 10 years for developing-country parties
• C. A GATS provision permitting WTO members to maintain Most-Favoured-Nation exemptions beyond their original 10-year limit
• D. A Doha Round decision authorising least-developed countries to maintain quantitative restrictions for balance-of-payments reasons

Q6. The liberalisation of trade in services under bilateral free trade agreements such as the India–UK CETA is disciplined within the WTO framework primarily under which one of the following provisions?

• A. GATT Article XXIV
• B. GATS Article II
• C. GATS Article V
• D. The Enabling Clause (1979)

Q7. Which of the following is the nodal Indian Ministry that anchors and coordinates the overall implementation of the 'India-UK Vision 2035' endorsed by the two Prime Ministers in 2025?

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

Q8. With reference to the 'India-UK Vision 2035' and how it differs from its predecessor, the 'India-UK Roadmap 2030' (adopted in 2021), consider the following statements: 1. Vision 2035 launches a 10-year Defence Industrial Roadmap covering co-design, co-development and co-production, which had no equivalent under the Roadmap 2030. 2. Under Vision 2035, the existing Foreign and Defence '2+2' Dialogue at senior official level is to be upgraded to the next higher level. 3. Vision 2035 abolishes the Technology Security Initiative (TSI) that was operating under the Roadmap 2030 and replaces it with the India-UK Connectivity and Innovation Centre. Which of the statements given above is/are correct?

1. Vision 2035 launches a 10-year Defence Industrial Roadmap covering co-design, co-development and co-production, which had no equivalent under the Roadmap 2030.
2. Under Vision 2035, the existing Foreign and Defence '2+2' Dialogue at senior official level is to be upgraded to the next higher level.
3. Vision 2035 abolishes the Technology Security Initiative (TSI) that was operating under the Roadmap 2030 and replaces it with the India-UK Connectivity and Innovation Centre.

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

Q9. The India–United Kingdom Comprehensive Economic and Trade Agreement (CETA) was signed on behalf of the United Kingdom by the Secretary of State heading which one of the following UK government departments?

• A. Foreign, Commonwealth and Development Office
• B. Department for International Trade
• C. Department for Business and Trade
• D. Department for Business, Energy and Industrial Strategy

Q10. Under the Mode 4 (movement of natural persons) commitments of the India–United Kingdom CETA, the only category for which a dedicated annual numerical quota (1,800 positions) has been reserved is that of:

• A. Contractual Service Suppliers in IT and IT-enabled services
• B. Intra-Corporate Transferees in financial services
• C. Independent Professionals in accountancy and management consultancy
• D. Indian chefs, yoga instructors and classical musicians

Q11. In the context of the India-UK economic engagement that enters into force on 15 July 2026, the 'Double Contribution Convention' (DCC) refers to which one of the following?

• A. A bilateral treaty to avoid double taxation of cross-border corporate income earned by Indian and UK enterprises.
• B. An agreement exempting Indian temporary workers posted to the UK, and their employers, from making UK social-security contributions for up to five years.
• C. A pact allowing dual citizenship for Indian-origin professionals employed in the United Kingdom.
• D. A mechanism for mutual recognition and portability of pension benefits between India's EPFO and the UK's National Insurance system.

Q12. On the Indian side, the negotiation and operationalisation of the India–UK Comprehensive Economic and Trade Agreement (CETA), including its Rules of Origin and Tariff Rate Quota schedules, is led exclusively by which one of the following?

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