UPSC Prelims Practice Questions — India-New Zealand FTA to Enter into Force from 20 October 2026

Q1. From which one of the following dates does duty-free access for 100 per cent of India's exports to New Zealand become operative under the India–New Zealand Free Trade Agreement?

  • A. 16 March 2025, when the two Ministers met and made the announcement
  • B. 22 December 2025, when the two sides issued their joint announcement
  • C. 27 April 2026, when the two Ministers put their signatures to the text
  • D. 20 October 2026, when the Agreement takes effect between the two sides

Q2. With reference to the India–New Zealand Free Trade Agreement, consider the following statements: 1. Negotiations for the Agreement were formally launched in March 2025. 2. The negotiations were concluded in December 2025, about nine months after their launch. 3. The Agreement was signed at Wellington during a visit by India's Commerce and Industry Minister to New Zealand. 4. The Agreement has been formally designated a Comprehensive Economic Partnership Agreement (CEPA), on the pattern adopted for India's agreement with the United Arab Emirates. Which of the statements given above is/are correct?

  1. Negotiations for the Agreement were formally launched in March 2025.
  2. The negotiations were concluded in December 2025, about nine months after their launch.
  3. The Agreement was signed at Wellington during a visit by India's Commerce and Industry Minister to New Zealand.
  4. The Agreement has been formally designated a Comprehensive Economic Partnership Agreement (CEPA), on the pattern adopted for India's agreement with the United Arab Emirates.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1, 2 and 4
  • D. 1, 3 and 4

Q3. Over how many formal rounds of negotiations, apart from in-person and virtual intersessions, was the India–New Zealand Free Trade Agreement brought to conclusion?

  • A. Three
  • B. Five
  • C. Seven
  • D. Nine

Q4. Consider the following statements regarding the conclusion and signing of the India–New Zealand Free Trade Agreement: 1. Its negotiations were launched and concluded within the same calendar year. 2. Unlike the India–Australia ECTA, which entered into force in the same calendar year in which it was signed, the India–New Zealand FTA enters into force in a calendar year later than its year of signature. 3. It was signed on India's behalf by the Union Minister of Commerce and Industry and on New Zealand's behalf by its Minister for Trade and Investment. Which of the statements given above is/are correct?

  1. Its negotiations were launched and concluded within the same calendar year.
  2. Unlike the India–Australia ECTA, which entered into force in the same calendar year in which it was signed, the India–New Zealand FTA enters into force in a calendar year later than its year of signature.
  3. It was signed on India's behalf by the Union Minister of Commerce and Industry and on New Zealand's behalf by its Minister for Trade and Investment.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q5. With reference to the market access provisions of the India–New Zealand Free Trade Agreement, consider the following statements: 1. New Zealand eliminates duties on 100 per cent of its tariff lines for India's exports from the date of entry into force. 2. Textiles and clothing, and leather and footwear, are among the labour-intensive Indian sectors that gain from the Agreement. 3. India has opened its dairy sector to New Zealand under the Agreement. 4. Market access granted by India in agriculture is delivered entirely through immediate duty elimination, without any recourse to tariff rate quotas. Which of the statements given above is/are NOT correct?

  1. New Zealand eliminates duties on 100 per cent of its tariff lines for India's exports from the date of entry into force.
  2. Textiles and clothing, and leather and footwear, are among the labour-intensive Indian sectors that gain from the Agreement.
  3. India has opened its dairy sector to New Zealand under the Agreement.
  4. Market access granted by India in agriculture is delivered entirely through immediate duty elimination, without any recourse to tariff rate quotas.
  • A. 1 and 2
  • B. 3 and 4
  • C. 2, 3 and 4
  • D. 4 only

Q6. New Zealand's market access offer under the India–New Zealand Free Trade Agreement provides for zero duty on the entirety of its tariff schedule from entry into force. This offer covers how many tariff lines?

  • A. 5,000 tariff lines
  • B. 8,284 tariff lines
  • C. 10,905 tariff lines
  • D. 11,806 tariff lines

Q7. The Health and Traditional Medicine Annexe of the India–New Zealand Free Trade Agreement enumerates the Indian traditional-medicine disciplines for which cooperation is to be promoted. How many such disciplines are named in it?

  • A. Four
  • B. Five
  • C. Six
  • D. Seven

Q8. Which one of the following is the nodal Union ministry for the systems of medicine whose overseas promotion the Health and Traditional Medicine Annexe of the India–New Zealand Free Trade Agreement is intended to advance?

  • A. The Ministry of Ayush
  • B. The Ministry of Health and Family Welfare, which alone regulates every system of medicine practised in India
  • C. The Ministry of Culture, which is the sole custodian of all traditional knowledge systems of the country
  • D. The Ministry of Commerce and Industry, which exclusively administers all services and health chapters of India's FTAs

Q9. Consider the following statements comparing the India–New Zealand Free Trade Agreement with India's other recent trade agreements: 1. The India–EFTA TEPA is India's first trade agreement with a bloc of developed European nations, its members being Switzerland, Norway, Iceland and Denmark. 2. India's agreement with the United Arab Emirates is designated a Comprehensive Economic Partnership Agreement, while its agreement with Australia is designated an Economic Cooperation and Trade Agreement. 3. The India–EFTA TEPA carries an investment facilitation objective of USD 100 billion over fifteen years, whereas the India–New Zealand FTA carries one of USD 20 billion over fifteen years. Which of the statements given above is/are correct?

  1. The India–EFTA TEPA is India's first trade agreement with a bloc of developed European nations, its members being Switzerland, Norway, Iceland and Denmark.
  2. India's agreement with the United Arab Emirates is designated a Comprehensive Economic Partnership Agreement, while its agreement with Australia is designated an Economic Cooperation and Trade Agreement.
  3. The India–EFTA TEPA carries an investment facilitation objective of USD 100 billion over fifteen years, whereas the India–New Zealand FTA carries one of USD 20 billion over fifteen years.
  • A. 1 and 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. The negotiation of India's free trade agreements, including the one concluded with New Zealand, is led on the Indian side by which one of the following?

  • A. The Department of Commerce under the Ministry of Commerce and Industry
  • B. The Directorate General of Foreign Trade under the Ministry of Commerce and Industry
  • C. The Department of Economic Affairs under the Ministry of Finance
  • D. The Central Board of Indirect Taxes and Customs under the Ministry of Finance

Q11. With reference to India–New Zealand bilateral relations, consider the following statements: 1. India's diplomatic presence in New Zealand began with a Trade Commission opened in 1950, which was later upgraded to a High Commission. 2. India and New Zealand are both members of the Commonwealth. 3. The two countries signed a Customs Cooperation Arrangement in 2024, before their FTA negotiations were concluded. 4. New Zealand is a founding member of both the Coalition for Disaster Resilient Infrastructure and the Indo-Pacific Oceans Initiative. Which of the statements given above is/are NOT correct?

  1. India's diplomatic presence in New Zealand began with a Trade Commission opened in 1950, which was later upgraded to a High Commission.
  2. India and New Zealand are both members of the Commonwealth.
  3. The two countries signed a Customs Cooperation Arrangement in 2024, before their FTA negotiations were concluded.
  4. New Zealand is a founding member of both the Coalition for Disaster Resilient Infrastructure and the Indo-Pacific Oceans Initiative.
  • A. 1 and 2
  • B. 2 and 3
  • C. 3 and 4
  • D. 4 only

Q12. The India–New Zealand Free Trade Agreement creates a 'Temporary Employment Entry' pathway. In terms of its ceiling and permitted duration, this pathway is best described as which one of the following?

  • A. A quota of 5,000 visas available at any given time, permitting a stay of up to three years
  • B. A quota of 5,000 visas issued afresh every financial year, permitting a stay of up to five years
  • C. A quota of 20,000 visas available at any given time, permitting a stay of up to three years
  • D. An uncapped pathway for listed occupations, permitting a stay limited to two years