UPSC Prelims Practice Questions — Commerce Secretary Shri Rajesh Agarwal Visits Switzerland to Advance India–EFTA TEPA Implementation and Boost Trade & Investment Cooperation

Q1. With reference to the European Free Trade Association (EFTA), consider the following statements regarding its membership: Which of the statements given above is/are NOT correct?

  1. Switzerland is a member of EFTA.
  2. Norway is a member of EFTA.
  3. Finland is a member of EFTA.
  4. Liechtenstein is a member of EFTA.
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 3 only
  • D. 3 and 4 only

Q2. As of 2026, how many sovereign States are members of the European Free Trade Association (EFTA), with which India's Trade and Economic Partnership Agreement (TEPA) entered into force?

  • A. Three
  • B. Four
  • C. Five
  • D. Seven

Q3. The 'European Free Trade Association' (EFTA), with which India signed the Trade and Economic Partnership Agreement (TEPA), is best described as which one of the following?

  • A. A customs union of all non-EU European states which maintains a common external tariff vis-à-vis third countries
  • B. An intergovernmental free-trade organisation of four European states — Switzerland, Norway, Iceland and Liechtenstein — that is distinct from the European Union
  • C. A subsidiary trade arm of the European Union that negotiates external trade agreements on behalf of its non-eurozone members
  • D. A bloc of European Economic Area members whose participants are obliged to automatically adopt the EU's acquis on goods and services

Q4. The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) entered into force in which one of the following months?

  • A. March 2024
  • B. October 2024
  • C. March 2025
  • D. October 2025

Q5. Under the India–EFTA Trade and Economic Partnership Agreement (TEPA), the dedicated India–EFTA Desk that serves as the single-window investment facilitation mechanism for EFTA businesses is hosted exclusively by which one of the following entities?

  • A. Invest India
  • B. Department for Promotion of Industry and Internal Trade (DPIIT)
  • C. Export-Import Bank of India (EXIM Bank)
  • D. Foreign Investment Promotion Board (FIPB)

Q6. Under Article 7 of the India–EFTA Trade and Economic Partnership Agreement (TEPA), the binding USD 100 billion investment commitment over 15 years refers exclusively to which one of the following categories of capital inflow?

  • A. Foreign Direct Investment (FDI), explicitly excluding Foreign Portfolio Investment
  • B. Combined Foreign Direct Investment and Foreign Portfolio Investment inflows
  • C. Official Development Assistance (ODA) extended by EFTA member states
  • D. External Commercial Borrowings (ECBs) raised by Indian firms from EFTA

Q7. With reference to the market access provisions under the India–EFTA Trade and Economic Partnership Agreement (TEPA), consider the following statements: 1. India has offered tariff concessions on a smaller share of its tariff lines than EFTA has offered to India. 2. EFTA's market access offer to India covers all non-agricultural products. 3. India has fully eliminated the effective customs duty on gold imports originating from EFTA States under the Agreement. Which of the statements given above is/are correct?

  1. India has offered tariff concessions on a smaller share of its tariff lines than EFTA has offered to India.
  2. EFTA's market access offer to India covers all non-agricultural products.
  3. India has fully eliminated the effective customs duty on gold imports originating from EFTA States under the Agreement.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. Under the India–EFTA Trade and Economic Partnership Agreement (TEPA) which entered into force in October 2025, on approximately what percentage of its total tariff lines has India offered tariff concessions to the EFTA States?

  • A. 72.5%
  • B. 82.7%
  • C. 92.2%
  • D. 99.6%

Q9. In the context of the India–EFTA Trade and Economic Partnership Agreement (TEPA), the 'India–EFTA Desk', inaugurated in February 2025 at Bharat Mandapam, New Delhi, is best described as:

  • A. A single-window investment facilitation mechanism providing structured support to EFTA businesses seeking to invest, expand or establish operations in India
  • B. The sole WTO-mandated dispute settlement forum exclusively empowered to adjudicate all tariff disputes between India and EFTA members
  • C. An exclusive currency swap arrangement of the Reserve Bank of India with every EFTA central bank to settle TEPA trade only in rupees
  • D. An export credit window funded entirely by EFTA to underwrite all outbound shipments of Indian MSMEs to European markets

Q10. How many member states constitute the European Free Trade Association (EFTA), which is India's counterpart bloc under the Trade and Economic Partnership Agreement (TEPA)?

  • A. Three
  • B. Four
  • C. Five
  • D. Seven

Q11. Which one of the following is the first Free Trade Agreement signed by India that incorporates a legally binding commitment on investment and job creation linked to tariff concessions?

  • A. India–UAE Comprehensive Economic Partnership Agreement (CEPA)
  • B. India–Australia Economic Cooperation and Trade Agreement (ECTA)
  • C. India–EFTA Trade and Economic Partnership Agreement (TEPA)
  • D. India–Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA)

Q12. How many chapters does the India–EFTA Trade and Economic Partnership Agreement (TEPA) comprise?

  • A. 10
  • B. 12
  • C. 14
  • D. 16

Q13. With reference to the European Free Trade Association (EFTA), often discussed in the context of the India–EFTA Trade and Economic Partnership Agreement (TEPA), which one of the following best describes EFTA?

  • A. A customs union of European Union member states governing common external tariffs under the Treaty of Rome.
  • B. An intergovernmental organisation of four non-EU European states — Switzerland, Norway, Iceland and Liechtenstein — promoting free trade among members, headquartered in Geneva.
  • C. A specialised trade-financing agency of the European Union created to extend duty-free market access to developing countries.
  • D. A monetary union of Alpine and Nordic states that share a common reserve currency pegged to the Swiss franc.