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Comprehensive Economic Partnership Agreement (CEPA)

PYQs

9

Articles

2

Momentum

25

Phase IFoundation

Background

Overview

CEPAs are a critical component of India's trade policy and economic diplomacy, directly impacting economic growth, employment, and India's position in the global economy (GS3).

Comprehensive Economic Partnership Agreements (CEPAs) are broad free trade agreements between two countries, covering trade in goods, services, investment, and other areas of economic cooperation, aiming to reduce tariffs and non-tariff barriers to boost bilateral trade and economic integration.

Phase IIStatic core

Facts & tables

Key facts

Objective

To significantly boost bilateral trade and investment between India and Canada.

Target

Finalization by the end of 2026.

Scope

Expected to cover goods, services, investment, critical minerals, clean energy, and resilient supply chains.

Significance

Aims to contribute to the target of $50 billion in bilateral trade by 2030.

Negotiation Status

Ongoing negotiations between India and Canada, with the 4th round recently held in Delhi.

Trade Enhancement

Aims to significantly boost bilateral trade, currently considered modest despite the economic sizes of both nations.

Negotiation Pace

Previous negotiations spanned 12 years without conclusion; current talks show rapid progress.

Expected Announcement

Expected to be announced during Prime Minister Modi's potential visit to Canada in December.

Reference table

Static syllabus anchors

TypeReference
Conceptual areaInternational Relations
Conceptual areaIndian Economy

Reference table

Institutions & roles

BodyRole
Ministry of Commerce and Industry (India)Negotiates and implements
Department of Foreign Affairs, Trade and Development (Canada)Negotiates and implements
Global Affairs CanadaNegotiates trade agreements
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Factual recall

Prelims angle: Terminology-based question

Quick revision

  • Broad FTA covering goods, services, investment.
  • Targeted for finalization by end of 2026.
  • Aims for $50B bilateral trade by 2030.
  • Key instrument for India-Canada economic cooperation.
  • Comprehensive trade agreement covering goods, services, investment.

Elimination traps

Body vs treaty — Distinguish CEPA from other types of trade agreements like FTA, PTA, etc.

Treaty = agreement between states; body = institution.

High-confidence PYQs

2025Statement-based questions, Factual recall

Consider the following statements: I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 cri...

EconomyOpen question
2023Multi-statement analysis, Factual recall

Consider the following statements : Statement-I : India accounts for 3.2% of global export of goods. Statement-II :Many local companies and some foreign com...

EconomyOpen question
2022Multi-statement analysis, Policy measures

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ? 1. They can sell their own goods in ...

EconomyOpen question
2020Multi-statement analysis, Conceptual understanding

With reference to the Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports b...

EconomyOpen question

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. No...

EconomyOpen question
2020Conceptual understanding, Multi-statement analysis

With reference to the Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports b...

EconomyOpen question

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. No...

EconomyOpen question
2018Factual recall, Cause and effect relationships

India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to

EconomyOpen question
2017Multi-statement analysis, Factual recall

Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and

International RelationsOpen question

Consider the following statements: 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO’s Bali Ministerial Package o...

International RelationsOpen question
2017Factual recall, Terminology-based question

Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and

International RelationsOpen question

Consider the following statements: 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO’s Bali Ministerial Package o...

International RelationsOpen question
2016Multi-statement analysis, Conceptual understanding

With reference to the ‘Trans-Pacific Partnership’, consider the following statements: 1. It is an agreement among all the Pacific Rim countries except China...

International RelationsOpen question

Topic timeline

International RelationsIndian Economy
Prelims 2016· Multi-statement analysis, Conceptual understanding

With reference to the ‘Trans-Pacific Partnership’, consider the following statements: 1. It is an agreement among all the Pacific Rim countries except China...

Open question
Prelims 2017· Multi-statement analysis, Factual recall

Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and

Open question

Consider the following statements: 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO’s Bali Ministerial Package o...

Open question
Prelims 2017· Factual recall, Terminology-based question

Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and

Open question

Consider the following statements: 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO’s Bali Ministerial Package o...

Open question
Prelims 2018· Factual recall, Cause and effect relationships

India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to

Open question
Prelims 2020· Multi-statement analysis, Conceptual understanding

With reference to the Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports b...

Open question

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. No...

Open question
Prelims 2020· Conceptual understanding, Multi-statement analysis

With reference to the Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports b...

Open question

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. No...

Open question
Prelims 2022· Multi-statement analysis, Policy measures

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ? 1. They can sell their own goods in ...

Open question
Prelims 2023· Multi-statement analysis, Factual recall

Consider the following statements : Statement-I : India accounts for 3.2% of global export of goods. Statement-II :Many local companies and some foreign com...

Open question
Prelims 2025· Statement-based questions, Factual recall

Consider the following statements: I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 cri...

Open question

Shaping the next chapter in India-Canada relations

01 Jun 2026 · CEPA is a comprehensive free trade agreement between India and Canada, targeted for finalization by 2026, aiming to significantly boost bilateral trade to $50 billion by 2030 by reducing trade barriers across goods, services, and investment.

Read article

India and Canada are well beyond reset now, says Canadian High Commissioner to India

12 Sep 2026 · The India-Canada CEPA is a free trade agreement under active negotiation, aiming to significantly enhance bilateral trade and investment by addressing various economic sectors and regulatory issues.

Read article

Related topics

Current topic

Comprehensive Economic Partnership Agreement (CEPA)

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International Economic Cooperation and Trade Agreements

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External Sector & Capital Flows

Open notesOften confused with

India-Canada Bilateral Relations

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Bilateral Investment Treaties (BITs)

Open notes
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India-UAE Bilateral Economic Relations

Coming soon
Often confused with

India-US Bilateral Trade Agreement

Open notes

Practice writing on this topic

UPSC has asked 9 linked questions on Comprehensive Economic Partnership Agreement (CEPA) in Mains. Write an answer to one — and get it evaluated.

See Mains PYQsEvaluate an answer

UPSC Prelims PYQs on Comprehensive Economic Partnership Agreement (CEPA)

Practice official previous year questions asked by UPSC related to this concept.

Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and

2017·International Relations
Solve

With reference to the Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct? 1. Quantitative restrictions on imports b...

2020·Economy
Solve

Consider the following statements: 1. India has ratified the Trade Facilitation Agreement (TFA) of WTO. 2. TFA is a part of WTO’s Bali Ministerial Package o...

2017·International Relations
Solve

India enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 in order to comply with the obligations to

2018·Economy
Solve

With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ? 1. They can sell their own goods in ...

2022·Economy
Solve

With reference to the ‘Trans-Pacific Partnership’, consider the following statements: 1. It is an agreement among all the Pacific Rim countries except China...

2016·International Relations
Solve

Consider the following statements : Statement-I : India accounts for 3.2% of global export of goods. Statement-II :Many local companies and some foreign com...

2023·Economy
Solve

Consider the following statements: I. India has joined the Minerals Security Partnership as a member. II. India is a resource-rich country in all the 30 cri...

2025·Economy
Solve

If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. No...

2020·Economy
Solve

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