UPSC Prelims Practice Questions — India–EFTA TEPA Marks Two Years, Strengthening Trade, Investment and Technology Collaboration
Q1. With reference to the European Free Trade Association (EFTA), the trading bloc with which India signed TEPA, consider the following countries:
1. Norway
2. Switzerland
3. Sweden
4. Liechtenstein
Which of the above is/are correctly identified as present member states of EFTA?
- Norway
- Switzerland
- Sweden
- Liechtenstein
- A. 1 and 2 only
- B. 1, 2 and 4 only
- C. 2 and 4 only
- D. 1, 2, 3 and 4
Q2. The European Free Trade Association (EFTA) was established by which one of the following instruments?
- A. The Treaty of Rome, which became operative in 1958
- B. The Stockholm Convention, which became operative in 1960
- C. The Maastricht Treaty, which became operative in 1993
- D. The Treaty of Lisbon, which became operative in 2009
Q3. The Department of Commerce, which administers the India–EFTA TEPA including its Article 7.1 investment commitment, functions under which one of the following Union Ministries?
- A. Ministry of Finance
- B. Ministry of External Affairs
- C. Ministry of Commerce and Industry
- D. Ministry of Corporate Affairs
Q4. With reference to the investment commitment under Article 7.1 of the India–EFTA TEPA, consider the following statements:
1. The EFTA States aim to increase FDI into India by USD 50 billion within the first 10 years of entry into force.
2. An additional USD 50 billion in FDI is targeted in the succeeding 5 years.
3. The commitment is structured over a total horizon of 15 years.
4. Foreign portfolio investment (FPI) is counted towards the USD 100 billion target.
Which of the statements given above is/are NOT correct?
- The EFTA States aim to increase FDI into India by USD 50 billion within the first 10 years of entry into force.
- An additional USD 50 billion in FDI is targeted in the succeeding 5 years.
- The commitment is structured over a total horizon of 15 years.
- Foreign portfolio investment (FPI) is counted towards the USD 100 billion target.
- A. 1 and 2 only
- B. 3 only
- C. 4 only
- D. 2 and 4 only
Q5. With reference to the timeline of the India–EFTA TEPA, consider the following:
1. Negotiations began in January 2008.
2. Negotiations were paused in 2013 and resumed in 2016.
3. The agreement was signed on 10 March 2024 in New Delhi.
4. The agreement entered into force on 1 October 2024.
Which of the above is/are correctly identified?
- Negotiations began in January 2008.
- Negotiations were paused in 2013 and resumed in 2016.
- The agreement was signed on 10 March 2024 in New Delhi.
- The agreement entered into force on 1 October 2024.
- A. 1, 2 and 3 only
- B. 1 and 3 only
- C. 2, 3 and 4 only
- D. 1, 2, 3 and 4
Q6. Comparing the India–EFTA TEPA with India's broader trade engagement with Europe, consider the following statements:
1. TEPA was concluded after multiple rounds of negotiations spread over more than a decade.
2. Unlike the still-unconcluded India–EU FTA, TEPA gives India trade access to a bloc of non-EU developed European economies.
3. TEPA entered into force immediately upon its signing in 2024, without requiring ratification by the EFTA states.
Which of the statements given above is/are correct?
- TEPA was concluded after multiple rounds of negotiations spread over more than a decade.
- Unlike the still-unconcluded India–EU FTA, TEPA gives India trade access to a bloc of non-EU developed European economies.
- TEPA entered into force immediately upon its signing in 2024, without requiring ratification by the EFTA states.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q7. On the Indian side, the India–EFTA TEPA — including its tariff concession schedules and market-access commitments — was negotiated and is coordinated by which one of the following?
- A. Directorate General of Foreign Trade (DGFT)
- B. Department of Commerce, Ministry of Commerce and Industry
- C. Central Board of Indirect Taxes and Customs (CBIC)
- D. Department for Promotion of Industry and Internal Trade (DPIIT)
Q8. Among the four EFTA member states, which one is India's largest trading partner and dominates India–EFTA bilateral trade?
- A. Switzerland
- B. Norway
- C. Iceland
- D. Liechtenstein
Q9. With reference to the services sub-sector commitments under the India–EFTA TEPA, consider the following matched pairs (Country : number of sub-sectors committed):
1. India : 105
2. Switzerland : 128
3. Norway : 114
4. Iceland : 120
Which of the pairs given above is/are NOT correctly matched?
- India : 105
- Switzerland : 128
- Norway : 114
- Iceland : 120
- A. 1 and 2 only
- B. 2 and 3 only
- C. 3 only
- D. 4 only
Q10. With reference to the distinctive features of the India–EFTA TEPA, consider the following:
1. It is India's first FTA with a bloc of developed European economies.
2. It is the first time in the history of FTAs that a binding investment commitment of USD 100 billion has been given.
3. It is India's first free trade agreement with the European Union (EU).
4. The investment commitment is linked to the creation of one million direct jobs in India.
Which of the above is/are correctly identified?
- It is India's first FTA with a bloc of developed European economies.
- It is the first time in the history of FTAs that a binding investment commitment of USD 100 billion has been given.
- It is India's first free trade agreement with the European Union (EU).
- The investment commitment is linked to the creation of one million direct jobs in India.
- A. 1 and 2 only
- B. 1, 2 and 3 only
- C. 1, 2 and 4 only
- D. 1, 2, 3 and 4
Q11. In the context of the India–EFTA agreement, the acronym 'TEPA' stands for which one of the following?
- A. Trade and Economic Partnership Agreement
- B. Trade and Economic Promotion Accord
- C. Tariff and Economic Partnership Arrangement
- D. Trade, Environment and Partnership Agreement
Q12. With reference to the institutional framework supporting the India–EFTA TEPA, consider the following statements:
1. India–EFTA cooperation that preceded TEPA was reflected in earlier joint statements and engagement before the agreement was signed.
2. The India–EFTA Desk was established as a single-window facilitation platform for EFTA investors.
3. Unlike India's other trade treaties, TEPA was brought into effect in India through ratification by the Indian Parliament.
Which of the statements given above is/are correct?
- India–EFTA cooperation that preceded TEPA was reflected in earlier joint statements and engagement before the agreement was signed.
- The India–EFTA Desk was established as a single-window facilitation platform for EFTA investors.
- Unlike India's other trade treaties, TEPA was brought into effect in India through ratification by the Indian Parliament.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3