India-UK Comprehensive Economic and Trade Agreement (CETA)
Indian Economy
- PYQs5
- Articles1
Background
Understanding India's trade policy, its efforts to integrate into global supply chains, the economic implications of such agreements, and their impact on various sectors of the Indian economy.
Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs) are international treaties designed to reduce trade barriers and foster economic integration between signatory countries, aiming to boost trade in goods and services, investment, and intellectual property cooperation.
Facts & tables
- Objective
- Significantly boost bilateral trade and investment
- Status
- Negotiations nearing completion, looked forward to early entry into force
- Scope
- Expected to cover goods, services, investment, and other areas
- Strategic Importance
- Part of India's broader strategy to expand its global trade footprint
| Type | Reference |
|---|---|
| Conceptual area | International Relations |
Prelims angle
Prelims angle: Factual recall
Prelims angle: Terminology-based question
- Bilateral trade agreement with UK.
- Aims to reduce trade barriers.
- Boosts goods, services, investment.
- Key to India's trade strategy.
- Expected to enter into force soon.
| Year | Framing tags |
|---|---|
| 2023 | Multi-statement analysis, Factual recall |
| 2020 | Multi-statement analysis, Factual recall |
| 2017 | Factual recall, Terminology-based question |
| 2017 | Definition-based questions, Policy measures |
| 2016 | Multi-statement analysis, Conceptual understanding |
Timeline
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International Relations
Conceptual area
-
Prelims 2016
Multi-statement analysis, Conceptual understanding
-
Prelims 2017
Factual recall, Terminology-based question
-
Prelims 2017
Definition-based questions, Policy measures
-
Prelims 2020
Multi-statement analysis, Factual recall
-
Prelims 2023
Multi-statement analysis, Factual recall
-
Prime Minister’s meeting with Prime Minister of UK on the sidelines of the G7 Summit
The India-UK CETA is a proposed bilateral trade agreement aimed at liberalizing trade in goods and services, and boosting investment, forming a key component of India's economic diplomacy and global trade strategy.
See also
Past papers
2016–2023 · 5 questions
In the news
Prime Minister’s meeting with Prime Minister of UK on the sidelines of the G7 Summit
The India-UK CETA is a proposed bilateral trade agreement aimed at liberalizing trade in goods and services, and boosting investment, forming a key component of India's economic diplomacy and global trade strategy.
Try these PYQs
Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and
The Broad-based Trade and Investment Agreement (BTIA) is negotiated between India and the European Union (EU).
Consider the following statements:
1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh.
3. In the last five years, Nepal has been the largest trading partner of India in South Asia.
Which of the statements given above is/are correct?
Statement 1 is not correct. Bilateral trade between India and Sri Lanka has increased by around 9 times between 2000-01 and 2018-19. Total trade between the two countries was US$ 6.2 billion in 2018-19, out of which India's exports to Sri Lanka were US$ 4.7 billion and imports were US$ 1.5 billion. Although India has always had a trade surplus with Sri Lanka, the gap has widened since 2008-09. In 2012-13 and 2016-17, the trade slumped, thus disturbing the steady increase in the graph. Statement 2 is correct. According to the World Bank, India exports $2.25 billion worth of textile and clothing products to Bangladesh. In turn, it imports $336 million worth of textile and clothing products from Dhaka. Statement 3 is not correct. Bangladesh is India's biggest trade partner in South Asia. Bilateral trade between India and Bangladesh has grown steadily over the last decade. India's exports to Bangladesh in FY 2018-19 stood at $9.21 billion and imports during the same period were at $1.04 billion.
Consider the following statements :
Statement-I : India accounts for 3.2% of global export of goods.
Statement-II :Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.
Which one of the following is correct in respect of the above statements?
* Statement I is incorrect: India's share in global merchandise trade is only 1.8% and 4% in global services. India plans to increase its export share in global trade from 2.1% to 3% by 2027 and 10% by 2047. * Statement II is correct: The PLI scheme is open to both domestic and international manufacturers. Samsung as well as Indian firms such as Dixon Technologies, UTL, Neolyncs, Lava International, Optiemus Electronics and Micromax are also expanding their factories to take advantage of the PLI scheme.
With reference to the ‘Trans-Pacific Partnership’, consider the following statements:
1. It is an agreement among all the Pacific Rim countries except China and Russia.
2. It is a strategic alliance for the purpose of maritime security only.
Which of the statements given above is/are correct?
Statement 1 is Incorrect: While China and Russia were not part of the TPP negotiations, it wasn't solely focused on Pacific Rim countries. Other economies like Vietnam and Singapore were part of the TPP despite not exactly being on the Pacific Rim. Statement 2 is Incorrect: The TPP was a proposed trade agreement, not a strategic alliance for maritime security. It aimed to reduce trade barriers and promote economic integration among member countries. The TPP negotiations were concluded in 2015, but the agreement was never ratified by all the signatories. The United States withdrew from the TPP in 2017, effectively ending the initiative in its original form. However, some member countries pursued alternative trade agreements based on the TPP framework. Hence, option D is the correct answer.
The term ‘Digital Single Market Strategy’ seen in the news refers to -
The Digital Single Market Strategy refers to an initiative by the European Union (EU) that aims to create a unified digital market across all member states. Overall, the Digital Single Market Strategy aims to stimulate growth in the European digital economy by fostering innovation, competition, and consumer confidence in the online marketplace.