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RAS question

The India-UK Free Trade Agreement signed in July 2025 gives duty-free access to what percentage of India's exports to the UK?

Correct answer: (D) 99%.

The India-UK Comprehensive Economic and Trade Agreement gives duty-free access to almost 99% of India's exports to the UK.

  1. (A)

    85%

  2. (B)

    90%

  3. (C)

    95%

  4. (D)

    99%

Explanation

The figure to remember is 99%. The PIB backgrounder says the India-UK Comprehensive Economic and Trade Agreement provides duty-free access to 99 per cent of India's exports to the UK and covers nearly the entire trade value. This is why option D is stronger than the lower percentage choices: the agreement is framed as broad tariff elimination, not a limited sectoral concession. The covered basket includes labour-intensive exports such as textiles, leather, marine products, gems and jewellery, and toys, along with higher-growth sectors such as engineering goods, chemicals, auto components and agri-products. For exam purposes, the key link is between tariff elimination and improved market access for Indian exporters in the UK market.

Why the other options are wrong

  • (A) 85% understates the agreement because the official PIB source places duty-free access at 99 per cent of India's exports to the UK.
  • (B) 90% is too low; the agreement is described as covering nearly the entire trade value, with 99 per cent of India's exports getting duty-free access.
  • (C) 95% is closer but still not the stated figure, as PIB specifies 99 per cent duty-free access for India's exports to the UK.

Concept

This tests the Indian Economy syllabus area of external sector policy, especially free trade agreements and market access. Such facts recur in RAS because current trade agreements connect tariff policy with exports, jobs and sectoral competitiveness.

Source

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