India and UK Finalize Comprehensive Economic Partnership Agreement
India and the United Kingdom have finalized the Comprehensive Economic Partnership Agreement (CEPA) to boost bilateral trade.
2-Minute Summary (TL;DR)
- India and UK have finalized the Comprehensive Economic Partnership Agreement (CEPA).
- The CEPA aims to double bilateral trade to approximately £70 billion by 2030.
- Key Indian export sectors like textiles, leather, and gems and jewelry will benefit from tariff concessions.
- India will ease import duties on certain British machinery and agricultural products.
- A dedicated chapter on digital trade and services is included in the agreement.
- The CEPA is expected to boost India's 'Make in India' initiative.
- Bilateral trade in goods and services was valued at around £36 billion in 2022.
- Negotiations for the CEPA officially began in January 2022.
How This Topic is Tested in Competitive Exams
| Exam | Frequency | Approx. Marks | What Gets Asked |
|---|---|---|---|
| UPSC / State PCS | Very High | 10–20 | International relations is a core GS-II topic for UPSC. Bilateral agreements, multilateral bodies, and geopolitics are essential. |
| SSC (CGL / CHSL / MTS) | Medium | 2–4 | International summits, treaties, and India's bilateral relations appear in SSC GK. |
| Banking (IBPS / SBI) | Medium | 2–4 | G20, IMF/World Bank decisions, and global trade events are tested in banking exams. |
| State PCS / PSC | Medium | 3–5 | State PCS papers test India's role in international forums and bilateral trade ties. |
Key Facts to Remember: India and UK Finalize Comprehensive Economic Partnership Agreement
- India and UK have finalized the Comprehensive Economic Partnership Agreement (CEPA).
- The CEPA aims to double bilateral trade to approximately £70 billion by 2030.
- Key Indian export sectors like textiles, leather, and gems and jewelry will benefit from tariff concessions.
- India will ease import duties on certain British machinery and agricultural products.
- A dedicated chapter on digital trade and services is included in the agreement.
- The CEPA is expected to boost India's 'Make in India' initiative.
- Bilateral trade in goods and services was valued at around £36 billion in 2022.
- Negotiations for the CEPA officially began in January 2022.
Practice Questions
Q1. What is the primary objective of the India-UK Comprehensive Economic Partnership Agreement (CEPA) regarding bilateral trade?
- To maintain the current trade volume.
- To triple bilateral trade by 2030.
- To double bilateral trade by 2030.
- To reduce bilateral trade by 2025.
Explanation: The CEPA explicitly aims to double the existing bilateral trade between India and the UK. The target set for achieving this significant increase is the year 2030.
Q2. Which of the following Indian export sectors is expected to receive significant tariff concessions under the CEPA?
- Pharmaceuticals and IT Services
- Automobiles and Renewable Energy
- Textiles, Leather, and Gems and Jewelry
- Education and Healthcare
Explanation: The agreement provides substantial tariff concessions for Indian exports, with a particular focus on key sectors like textiles, leather goods, and the intricate gems and jewelry industry, making them more competitive in the UK market.
Q3. In which year did the official negotiations for the India-UK CEPA commence?
- 2020
- 2021
- 2022
- 2023
Explanation: The negotiations for the Comprehensive Economic Partnership Agreement between India and the United Kingdom officially commenced in January 2022, following earlier discussions and strategic alignments.
Q4. Besides tariff concessions, what is a notable forward-looking provision included in the India-UK CEPA?
- A chapter on defense cooperation.
- A dedicated chapter on digital trade and services.
- An agreement on joint space exploration.
- A framework for cultural exchange programs.
Explanation: The CEPA includes a dedicated chapter on digital trade and services, which is designed to facilitate cross-border digital commerce, promote innovation, and ease the movement of professionals between the two nations.
Q5. What was the approximate value of bilateral trade in goods and services between India and the UK in 2022?
- £15 billion
- £25 billion
- £36 billion
- £50 billion
Explanation: Prior to the full impact of the CEPA, the bilateral trade in goods and services between India and the United Kingdom was valued at approximately £36 billion in the year 2022.
How to Prepare International Affairs for Government Exams — India and UK Finalize Comprehensive Economic Part…
Focus on India-centric news — India's bilateral visits, MoUs signed, and positions in international bodies. This is what domestic exams test.
For UPSC, understand geopolitical context: Why does India take a particular position? What is India's strategic interest?
Keep a running note of all G20, SCO, BRICS, and QUAD-related outcomes. These bodies generate 3–5 questions per major exam cycle.
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