25 ULTRA-DECEPTIVE IAS PRELIMS MCQs (India–EU Trade Deal)
Q1. Regarding India–EU merchandise trade trends, which of the following statements is/are correct?
1. India’s merchandise exports to the EU grew faster than its merchandise imports from the EU on a CAGR basis between 2020-21 and 2024-25.
2. India’s merchandise imports from the EU in 2024-25 exceeded India’s merchandise exports to the EU.
3. EU is India’s largest merchandise trading partner in terms of absolute value.
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
2. In the India–EU Trade Deal, which sector shows 100% immediate duty-free access by the EU but has zero tariff-phase-out obligations?
A. Textiles
B. Toys
C. Leather/Footwear
D. Base Metals
3. In the distribution of EU tariff concessions, which of the following pairs is correctly matched?
Sector — Approx. tariff lines immediately duty-free at entry into force
1. Marine Products — 59%
2. Chemicals — 59%
3. Base Metals — 79%
4. Furniture & Lighting — 100%
A. 1 and 2 only
B. 2 and 3 only
C. 3 and 4 only
D. 1, 2, 3 and 4
4. Which of the following best describes India’s approach to tariff liberalisation under the Deal?
1. More than half of tariff lines receive immediate duty-free treatment.
2. More than 60% of trade value falls under phased elimination.
3. Total coverage exceeds 92% of tariff lines.
A. 1 and 3 only
B. 2 and 3 only
C. 1 and 2 only
D. 1, 2 and 3
5. Under India–EU agricultural market access commitments, which of the following categories receive preferential access while simultaneously being safeguarded?
1. Tea and coffee
2. Beef and dairy
3. Spices
4. Fish and seafood
A. 1 and 3 only
B. 2 and 4 only
C. 1, 2 and 4 only
D. 1, 2, 3 and 4
6. The EU excludes certain products from tariff concessions. Which of the following is NOT among them?
A. Sugar
B. Honey
C. Base metals
D. Dairy products
7. Consider the following statements on the Services sector under the FTA:
1. India’s GVA share of Services is higher than that of the EU.
2. EU offers commitments covering more sectors/sub-sectors than India.
3. India offers significant access in maritime transport and telecom services.
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
8. Which of the following correctly matches the maximum duration of stay allowed in the EU under mobility provisions?
1. ICT Managers/Specialists — 3 years
2. ICT Trainee Employees — 1 year, non-extendable
3. Contractual Service Suppliers — 12 months cumulative
4. Independent Professionals — 12 months cumulative
A. 1, 3 and 4 only
B. 1, 2 and 3 only
C. 2 and 4 only
D. 1, 2, 3 and 4
9. Which of the following gains relate specifically to mobility for India under the Trade Deal?
1. Family members of ICTs are allowed entry and stay.
2. EU offers commitments covering more than 30 sectors for Contractual Service Suppliers.
3. Independent Professionals receive commitments in more sectors than CSS.
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
10. Which of the following statements best distinguishes India’s financial services commitments?
1. India provides 100% FDI in insurance.
2. India provides 100% FDI for foreign banks.
3. India allows EU banks to open up to 15 branches over 4 years.
A. 1 and 3 only
B. 2 and 3 only
C. 1 and 2 only
D. 1, 2 and 3
11. The Telecommunication Services Annexure under the FTA includes which elements?
1. Competitive safeguards
2. Mandatory harmonisation of spectrum policy
3. Access to submarine cable systems
4. Prohibition on universal service obligations
A. 1 and 3 only
B. 2 and 4 only
C. 1, 2 and 3 only
D. 1, 2, 3 and 4
12. The provision on mutual recognition of professional qualifications implies which of the following?
1. EU must automatically recognise all Indian qualifications.
2. India and EU will open negotiations when the EU recognises third-country qualifications.
3. Commitments include recognition of experience and certifications.
A. 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
13. Regarding the Most-Favoured-Nation (MFN) clause in Services, which is correct?
1. MFN remains permanently active once triggered.
2. MFN continues automatically for 5 years from entry into force.
3. Student entry and stay developments form part of the MFN review criteria.
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 3 only
14. India’s sensitivities in Services are protected through which mechanisms?
1. Carve-outs for national security
2. Complete exclusion of telecommunication services
3. Reservation of policy space in legal services
A. 1 and 3 only
B. 1 only
C. 2 and 3 only
D. 1, 2 and 3
15. Which digitally delivered services are expected to gain from the FTA?
1. IT/ITeS
2. Education services
3. Audio-visual production services
4. Professional services
A. 1, 2 and 4 only
B. 1 and 3 only
C. 1, 2 and 3 only
D. 1, 2, 3 and 4
16. Under the Rules of Origin (RoO), which statements are correct?
1. WO refers to products processed substantially in multiple countries.
2. Value addition rules may use a “maxNOM” or “minQVC” basis.
3. CTC can occur at 2-, 4-, or 6-digit level changes.
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
17. The Product Specific Rules (PSRs) for chemicals include:
1. Chemical reaction process
2. Weaving or knitting as mandatory
3. Isomer separation
4. Flexibility through CTC criteria
A. 1, 3 and 4 only
B. 2 and 3 only
C. 1 and 2 only
D. 1, 2, 3 and 4
18. Which rules apply to steel under PSR?
1. Melt & Pour requirement
2. Flexibility to source non-originating primary inputs
3. Emphasis on substantial transformation
4. 100% WO requirement
A. 1 and 3 only
B. 2 and 4 only
C. 1, 2 and 3 only
D. 3 and 4 only
19. Under the “Insufficient Operations” clause, which activities do NOT confer origin?
1. Minor assembly
2. Packaging
3. Chemical reaction
4. Labelling
A. 1, 2 and 4 only
B. 1 and 3 only
C. 2, 3 and 4 only
D. 1, 2, 3 and 4
20. “Bilateral cumulation” in the India–EU deal indicates that:
1. Indian producers may treat EU inputs as non-originating.
2. Both partners can treat each other’s inputs as originating.
3. Cumulated products must still satisfy PSRs.
A. 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
21. Under the principle of absorption:
1. A material that has acquired origin loses its non-originating character.
2. All non-originating inputs must be recounted at every stage.
3. The rule benefits value chains with multiple transformation steps.
A. 1 and 3 only
B. 1 only
C. 2 and 3 only
D. 1, 2 and 3
22. Under the FTA, which flexible provisions apply specifically to small exporters?
1. Alternative PSRs for marine products
2. Quota-based flexibility for aluminium downstream products
3. Blending rule for liquor
4. Process rule alignment for synthetic diamonds
A. 1 and 2 only
B. 2 and 4 only
C. 1, 2 and 4 only
D. 1, 2, 3 and 4
23. Under the “Statement on Origin” system:
1. Exporters must register under DGFT’s common digital platform.
2. Importer’s knowledge may be used by India but not by the EU.
3. Certificates of Origin may be issued by exporters themselves.
A. 1 and 3 only
B. 1 only
C. 1, 2 and 3
D. 2 and 3 only
24. The authentication and verification mechanism includes:
1. Mandatory pre-verified certificates issued only by government authorities.
2. Specified timelines for verification requests.
3. Acceptance of self-certified CoO if authentication system is in place.
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
25. Technical Barriers to Trade (TBT) chapter applies to:
1. Conformity assessment procedures
2. Standards and technical regulations
3. All measures adopted by state governments
4. Central government regulatory bodies
A. 1 and 4 only
B. 1, 2 and 4 only
C. 2 and 3 only
D. 1, 2, 3 and 4
📘 ANSWER KEY WITH DETAILED EXPLANATIONS
1. B – Exports grew faster (16.4% > 11.2%); exports > imports; EU not stated as largest.
2. C – Leather/Footwear is 100% immediate; zero phased lines.
3. B – Chemicals 59%; Base metals ~79%; others mismatched.
4. B – India gives 49.6% immediate; 63.1% under phased; >92% total lines covered.
5. A – Tea, coffee, spices get access; beef/dairy/fish are safeguarded, not preferential.
6. C – Base metals are not excluded.
7. B – EU commits in 144 sectors (more than India); India commits in 102 including maritime & telecom.
8. A – ICT trainees are extendable; other durations correct.
9. B – CSS = 37 sectors; IP = 17; family entry allowed.
10. A – India offers 100% FDI in insurance, not banking.
11. A – No mandatory harmonisation; autonomy retained; USO allowed.
12. B – No automatic recognition; negotiation triggered; recognition of experience included.
13. B – MFN active for 5 years; student criteria part of review.
14. A – India retains security carve-out + legal services space.
15. A – IT, education, professional services; no mention of audio-visual.
16. B – WO = fully produced domestically; CTC levels correct; VA rules use maxNOM/minQVC.
17. A – Chemicals rules include chemical reaction, isomer separation, CTC.
18. A – Steel has Melt & Pour + substantial transformation.
19. A – Minor assembly, packaging, labelling = insufficient; chemical reaction confers origin.
20. B – Cumulation treats partner inputs as originating; PSRs must still be met.
21. A – Absorption removes need to track non-originating inputs later.
22. C – Marine + aluminium + synthetic diamonds; liquor blending is a general flexibility.
23. A – Importer’s knowledge applies only for EU importers.
24. B – Self-certified CoO accepted once systems are ready; timelines exist.
25. B – TBT applies to central bodies only; includes standards, regulations, conformity assessment.