India and UK Finalize Landmark Free Trade Agreement (FTA)
India and the United Kingdom have officially signed a comprehensive Free Trade Agreement (FTA) to boost bilateral trade and investment.
2-Minute Summary (TL;DR)
- India-UK FTA signed to double bilateral trade by 2030.
- Reduces tariffs on textiles, jewelry, and automobiles.
- Includes a chapter on simplified visas for professionals and students.
- First major FTA for India with a G7 nation post-Brexit.
How This Topic is Tested in Competitive Exams
| Exam | Frequency | Approx. Marks | What Gets Asked |
|---|---|---|---|
| SSC (CGL / CHSL / MTS) | Medium | 2–4 | Budget highlights, GDP data, and government economic schemes appear in SSC CGL GK section. |
| Banking (IBPS / SBI) | Very High | 6–10 | RBI policy, inflation, CRR/SLR, monetary committee decisions — banking exams test the full spectrum. |
| UPSC / State PCS | High | 10–20 | Economy is a core UPSC subject. Economic Survey, budget, and policy changes are heavily tested. |
| State PCS / PSC | High | 4–8 | State budget, MSME, agriculture policy, and banking data are common in state PCS papers. |
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?
- 2025
- 2028
- 2030
- 2035
Explanation: The agreement sets a target to double the bilateral trade between India and the UK by the year 2030.
Q2. Which sector in India is expected to benefit significantly from reduced tariffs under the UK FTA?
- Space technology
- Textiles and Jewelry
- Defense manufacturing
- Coal mining
Explanation: Indian labor-intensive sectors like textiles, jewelry, and leather are expected to see a major boost due to tariff reductions.
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.
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