economy1 min read

India and UK Implement Comprehensive Free Trade Agreement

The Free Trade Agreement (FTA) between India and the United Kingdom has officially come into force, eliminating tariffs on 90% of goods.

Key Points for Quick Revision

  • India-UK FTA comes into force
  • Tariffs eliminated on 90% of goods
  • Includes services and professional mobility
  • Target to double trade by 2030

How This Topic is Tested in Competitive Exams

ExamFrequencyApprox. MarksWhat Gets Asked
Banking (IBPS / SBI)Very High6–10RBI policy, inflation, CRR/SLR, monetary committee decisions — banking exams test the full spectrum.
SSC (CGL / CHSL / MTS)Medium2–4Budget highlights, GDP data, and government economic schemes appear in SSC CGL GK section.
UPSC / State PCSHigh10–20Economy is a core UPSC subject. Economic Survey, budget, and policy changes are heavily tested.

What to Memorize from This Topic

  • Key budget figures: fiscal deficit %, GDP growth projection, key scheme allocations
  • RBI rate decisions: Repo rate, CRR, SLR, Reverse Repo — current values
  • Rankings: India's position in ease of doing business, hunger index, HDI
  • Abbreviations: FRBM, NBFC, MPC, PMGSY, PMGKAY — full forms and purpose
  • Trade data: import-export balance, major trading partners

Practice Questions

Q1. The India-UK FTA aims to double bilateral trade by which year?

  1. 2027
  2. 2030
  3. 2035
  4. 2040

Explanation: The agreement targets doubling the bilateral trade between India and the UK by 2030.

Q2. Which sector is expected to benefit from easier professional movement under the FTA?

  1. Agriculture
  2. Services
  3. Mining
  4. Fisheries

Explanation: The FTA includes provisions for the services sector, facilitating the movement of professionals.

How to Prepare Economy & Finance for Government Exams

Track current Repo Rate, Inflation rate, and GDP growth. These three numbers appear in almost every banking exam.

Keep a running note of new schemes with their ministry, launch date, and target beneficiary group.

Focus on the Economic Survey and Union Budget highlights — these single documents generate dozens of exam questions.