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RAS question

Consider the following statements about the India-EFTA Trade and Economic Partnership Agreement (TEPA) that entered into force on October 1, 2025: 1. EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein. 2. EFTA countries committed $100 billion in investments over 15 years and facilitation of 1 million jobs in India. 3. TEPA was signed in March 2024 after 16 years of negotiations. Which of the above statements is/are correct?

Correct answer: (D) 1, 2 and 3.

The India-EFTA TEPA statements are all correct: EFTA comprises Switzerland, Norway, Iceland and Liechtenstein; the pact includes USD 100 billion in investment and 10 lakh jobs over 15 years; and it was signed in March 2024 after 16 years of negotiations.

  1. (A)

    1 and 2 only

  2. (B)

    2 and 3 only

  3. (C)

    1 and 3 only

  4. (D)

    1, 2 and 3

Explanation

All three statements match the official account of the India-EFTA Trade and Economic Partnership Agreement. EFTA is the grouping of Iceland, Liechtenstein, Norway and Switzerland, and TEPA is India's free trade agreement with these four developed European nations. The agreement was signed on 10 March 2024 and came into force on 1 October 2025. Its distinctive feature is the investment-and-jobs commitment: the four EFTA states pledged to raise foreign direct investment in India by USD 50 billion in the first 10 years and another USD 50 billion in the next five years, with the expected creation of 10 lakh direct jobs. That makes statement 2 central, not incidental, to the pact's importance in India's FTA landscape.

Why the other options are wrong

  • (A) Option A leaves out statement 3, even though TEPA was signed in March 2024 after the long negotiation process mentioned in the question.
  • (B) Option B leaves out statement 1, although EFTA's membership is exactly Switzerland, Norway, Iceland and Liechtenstein.
  • (C) Option C leaves out statement 2, but the USD 100 billion investment and 10 lakh jobs commitment is a core feature of TEPA.

Concept

This tests external-sector policy, especially India's free trade agreements and investment-linked trade commitments. RAS often asks such current-economy topics because they connect institutions, dates, member countries and economic outcomes in one statement-based question.

Source

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