RAS question
Consider the following statements about the India–EFTA Trade and Economic Partnership Agreement (TEPA) that came into force in October 2025: 1. EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein. 2. EFTA countries committed to facilitate USD 100 billion in investment in India over 15 years. 3. TEPA was signed in March 2025 after 8 years of negotiations. Which of the above statements is/are correct?
Correct answer: (A) 1 and 2 only.
The India-EFTA TEPA involves Switzerland, Norway, Iceland and Liechtenstein, and includes a USD 100 bn investment-facilitation commitment over 15 years, but it was signed on 10 March 2024, not in March 2025.
Explanation
For this TEPA, the PIB release identifies EFTA as the bloc comprising Switzerland, Iceland, Norway and Liechtenstein, and says EFTA committed to promote USD 100 bn in foreign direct investment in India over the next 15 years. That investment point is central to the agreement: the release calls it a binding commitment linked to investment and job creation, alongside facilitation of direct employment through such investment. The agreement was signed on 10 March 2024, followed 16 years of negotiations rather than 8 years, and later came into force on 1 October 2025.
Why the other options are wrong
- (B) TEPA was signed on 10 March 2024, and the negotiations lasted 16 years, not 8 years.
- (C) The PIB release records EFTA's USD 100 bn investment-facilitation commitment over 15 years, while TEPA was signed on 10 March 2024 after 16 years of negotiations.
- (D) The signing was in March 2024, not March 2025, and the negotiation period was 16 years, not 8 years.
Concept
India's external-sector agreements require close attention to the factual terms of recent FTAs and trade partnership agreements. RAS often asks such items because they combine current affairs with core economy themes: trade blocs, investment commitments and implementation timelines.