UPSC Prelims Practice Questions — Union Minister Of Commerce And Industry Shri Piyush Goyal Urges Industry To Leverage India–EFTA TEPA; Highlights $100 Billion FDI Commitment And Potential For 1 Million Jobs

Q1. Within the EFTA grouping, which one of the following member states is the principal source of foreign direct investment into India under the TEPA framework?

• A. Norway
• B. Iceland
• C. Switzerland
• D. Liechtenstein

Q2. With reference to the binding investment-and-employment commitment under TEPA, consider the following statements. Which of the above is/are NOT correct?

1. 1. USD 50 billion of FDI is targeted within the first 10 years of entry into force.
2. 2. A further USD 50 billion of FDI is targeted in the succeeding 5 years.
3. 3. The commitment aims to generate 1 million direct jobs in India.
4. 4. The full USD 100 billion investment target is to be achieved within a 10-year horizon.

• A. 1 and 2
• B. 2 and 3
• C. 4 only
• D. 3 and 4

Q3. Which one of the following is the nodal implementing authority on the Indian side for the India–EFTA TEPA?

• A. Department of Commerce, Ministry of Commerce and Industry
• B. Department for Promotion of Industry and Internal Trade (DPIIT)
• C. Department of Economic Affairs, Ministry of Finance
• D. Ministry of External Affairs

Q4. With reference to the negotiating timeline of the India–EFTA TEPA, consider the following statements. Which of the statements given above is/are correct?

1. 1. Negotiations for the agreement were first launched in 2008.
2. 2. After a prolonged pause, the negotiations were resumed in October 2016.
3. 3. The agreement was signed and entered into force on the same date.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q5. In which year did the India–EFTA Trade and Economic Partnership Agreement (TEPA) enter into force?

• A. 2016
• B. 2023
• C. 2024
• D. 2025

Q6. With reference to the market-access offers exchanged under TEPA, consider the following statements. Which of the statements given above is/are correct?

1. 1. EFTA has offered 92.2% of its tariff lines, covering 99.6% of India's exports.
2. 2. EFTA's market-access offer covers 100% of non-agricultural products.
3. 3. India's tariff-line offer to EFTA is larger than EFTA's tariff-line offer to India.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q7. The India–EFTA TEPA is described as India's first free trade agreement concluded with which one of the following developed European groupings?

• A. The European Union
• B. The European Free Trade Association
• C. The European Economic Area
• D. The Schengen Area

Q8. Which one of the following best describes the European Free Trade Association (EFTA) with which India signed TEPA?

• A. An intergovernmental organisation of four non-EU European states promoting free trade among themselves and with partners
• B. A customs union comprising all 27 members of the European Union
• C. The institution that operates the European Union's single currency
• D. A defence and security alliance of Western European nations

Q9. In his March 2026 remarks urging industry to leverage TEPA, Piyush Goyal noted that India had subsequently finalised a trade agreement with the European Union comprising how many member nations?

• A. 25
• B. 27
• C. 28
• D. 31

Q10. With reference to the India–EFTA Desk established to facilitate investment flows, consider the following statements. Which of the statements given above is/are correct?

1. 1. The India–EFTA Desk has been operational since February 2025.
2. 2. It functions as a single-window platform for prospective investors.
3. 3. It is administered by the Ministry of External Affairs.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3