What are the key features of the India–New Zealand Free Trade Agreement (FTA)?

India signed a Free Trade Agreement (FTA) with New Zealand that provides duty-free access for 100% of India’s exports to New Zealand. India has offered tariff liberalisation on 70.03% of tariff lines covering 95% of bilateral trade value, while keeping 29.97% of tariff lines excluded to protect sensitive sectors. New Zealand has committed to invest $20 billion in India over the next 15 years. The agreement benefits farmers, MSMEs, startups, artisans, women, youth, students, and innovators.

What were India’s major exports and imports with New Zealand in FY26?

In FY26, India’s exports to New Zealand stood at $711 million and included aviation fuel, textiles, pharmaceuticals, and machinery. Imports from New Zealand totalled $587 million and included raw materials, scrap metals, coal, and farm-linked inputs.

Why is the India–New Zealand FTA significant for agricultural trade?

New Zealand became the first country to secure preferential access for apples in any Indian FTA. It also secured tariff-free access for kiwifruit along with a 50% tariff reduction outside quota. This marks a major development in bilateral agricultural trade relations.

What is Additional Factor of Authentication (AFA) in RBI’s e-mandate framework?

Additional Factor of Authentication (AFA) is an extra security layer required for digital transactions. Under RBI’s revised Digital Payments – E-mandate Framework 2026, recurring e-mandate transactions up to Rs 15,000 per transaction do not require AFA. However, insurance premiums, mutual fund subscriptions, and credit card bill payments can be processed without AFA up to Rs 1 lakh per transaction.

How does RBI’s e-mandate framework enhance digital payment security?

The RBI framework requires issuers to clearly specify the validity period of e-mandates. Customers can modify or withdraw mandates at any time. It allows both fixed and variable mandates, with customers able to define maximum limits for variable payments. Users can also choose preferred notification modes such as SMS or email for pre-transaction alerts.

How does using local currencies in cross-border trade impact India?

Using local currencies for cross-border trade helps reduce the outflow of foreign currency and eases pressure on the exchange rate. In 2025-26, India had a trade deficit of $119 billion. Settling trade in rupees can stabilise the rupee more effectively than certain forex market measures. RBI has signed local currency settlement agreements with UAE, Indonesia, and Maldives, in addition to existing arrangements with Bhutan and Nepal.

What are prediction markets and how do they work?

Prediction markets are platforms where users trade contracts tied to the outcome of real-world events such as elections, policy decisions, commodity prices, or geopolitical developments. Prices fluctuate based on demand, reflecting the collective probability assessment of participants. Popular global platforms include Polymarket, Kalshi, and PredictIt. In India, access to certain prediction markets has been restricted under regulatory advisories.

Which crop is affected by Orobanche aegyptiaca?

Mustard is increasingly susceptible to infestation by Orobanche aegyptiaca, a parasitic weed. The weed attaches to mustard roots and extracts nutrients, carbon, and water, causing wilting, yellowing, stunted growth, and lower yields. The damage often occurs underground before visible symptoms appear.

What is Orobanche aegyptiaca and why is it harmful to crops?

Orobanche aegyptiaca is a parasitic weed that infects mustard crops by attaching to plant roots and drawing nutrients and water. It remains hidden underground during early growth stages, making detection difficult. By the time it becomes visible, significant crop damage has already occurred, reducing productivity and affecting farmer income.

Daily UPSC Prelims MCQs - Economy - 4th May 2026

Jigyashu Mishra
May 4
1 min read

Test your UPSC CSE 2026 preparation with today’s Economy (Every Monday) Quiz — covering India-New Zealand trade, additional factor of authentication (AFA), cross-border transactions, Prediction markets, Orobanche aegyptiaca (parasitic weed) and more.

Yearly CA MCQs Apr 2025-Mar 2026 Compilation

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Daily UPSC Prelims MCQs - Economy - 4th May 2026

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