RAS question
The India-EFTA Trade and Economic Partnership Agreement (TEPA) entered into force in October 2025. What investment commitment did EFTA countries make under this agreement?
Correct answer: (B) USD 100 billion over 15 years.
Under the India-EFTA TEPA, the EFTA countries committed to an investment objective of USD 100 billion in India over 15 years.
Explanation
The India-EFTA Trade and Economic Partnership Agreement is important because its investment clause is not a routine statement of intent. The PIB release on the agreement's entry into force says TEPA includes an investment objective of USD 100 billion over 15 years, along with facilitation of one million direct jobs in India. That matches option B. The agreement covers the EFTA countries named in the question's explanation, namely Switzerland, Norway, Iceland and Liechtenstein, and the same PIB release presents it as a trade pact with a firm investment commitment. For RAS purposes, the key number is therefore the paired amount and time frame: USD 100 billion, spread over 15 years, not a smaller 10-year target or a larger 20-year figure.
Why the other options are wrong
- (A) USD 50 billion over 10 years understates both the investment amount and the period stated for TEPA.
- (C) USD 200 billion over 20 years doubles the stated amount and extends the time frame beyond the TEPA investment objective.
- (D) USD 75 billion over 10 years is not the investment objective recorded for the India-EFTA TEPA.
Concept
This tests India's external-sector policy, especially free trade agreements and investment commitments. It recurs in RAS because such agreements connect trade policy, FDI expectations and employment claims in current economic affairs.