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Indian EconomyMediumAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper I

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

  1. A.European Union
  2. B.Gulf Cooperation Council
  3. C.Organization for Economic Cooperation and Development
  4. D.Shanghai Cooperation Organization

Correct answer

A. European Union

Explanation

The correct answer is A, European Union. The Broad-based Trade and Investment Agreement was the name given to the free trade agreement that India and the European Union began negotiating in 2007. It was meant to cover trade in goods and services, investment, government procurement and other areas. Talks stalled in 2013 over differences on issues such as tariffs on automobiles and wines, market access for Indian professionals, data security status and intellectual property. India and the EU relaunched the negotiations in 2022 as a separate free trade agreement, a standalone investment protection agreement and an agreement on geographical indications. Option B is wrong because India's trade talks with the Gulf Cooperation Council are known as the India–GCC FTA. Option C is wrong because the OECD is a policy forum of developed countries, not a partner in trade negotiations with India. Option D is wrong because the Shanghai Cooperation Organisation is a security and political grouping, not a trade agreement partner. Exam tip: BTIA = India–EU, launched 2007; CECA, CEPA and FTA are the other names India uses for trade deals.

Practice Questions

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Q1.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IMedium

Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

  1. A.Spices
  2. B.Fresh fruits
  3. C.Pulses
  4. D.Vegetable oils
Show answer
Correct answer: D. Vegetable oils

Edible vegetable oils are India's largest agricultural import by value, and they have stayed at the top since well before this question was set.

Q2.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2019, GS Paper IMedium

Consider the following statements : 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries. 2. In terms of PPP dollars, India is the sixth largest economy in the world. Which of the statements given above is/are correct?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: A. 1 only

Statement 1 is the definition of purchasing power parity, while statement 2 understates India's position. A PPP exchange rate is the rate at which the currency of one country would have to be converted into that of another to buy the same basket of goods and services in both.

Q3.Indian EconomyAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper IMedium

What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below :

  1. A.1 only
  2. B.2 and 3 only
  3. C.1 and 3 only
  4. D.1, 2 and 3
Show answer
Correct answer: A. 1 only

The main and certain advantage of GST is that it subsumes many indirect taxes into one and creates a common national market.

Q5.Indian EconomyAsked in: CDS · CDS-I 2020, GKMedium

In economics, if a diagram has a line passing through the origin and has 45° angle with either axis and it is asserted that along the line X = Y, what is tacitly assumed?

  1. A.Both variables are pure numbers.
  2. B.Both variables are in the same unit.
  3. C.Both variables are in different units.
  4. D.At least one variable is a pure number.
Show answer
Correct answer: B. Both variables are in the same unit.

A line through the origin at 45° to each axis joins all the points where the distance along the horizontal axis equals the distance along the vertical axis.