Comprehension

Read the following passage carefully and answer the questions that follow :

SAFTA aims at lowering trade tariffs. But some of our neighbours fear that SAFTA is a way for India to 'invade' their markets and to influence their societies and politics through commercial ventures and a commercial presence in their countries. India thinks that there are real economic benefits for all from SAFTA and that a region that trades more freely will be able to cooperate better on political issues. Some in India think that SAFTA is not worth the trouble since India already has bilateral agreements with Bhutan, Nepal and Sri Lanka.

Question: 1

SAFTA came into effect from :

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SAFTA was signed in 2004 and came into force on 1 January 2006.
Updated On: Nov 12, 2026
  • 1st January, 2004
  • 1st January, 2005
  • 1st January, 2006
  • 1st January, 2007
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The Correct Option is C

Solution and Explanation

Step 1: Understand the question:
The question asks from which date the South Asian Free Trade Agreement (SAFTA) came into effect.

Step 2: Recall the fact:
SAFTA was signed at the 12th SAARC summit in Islamabad in 2004.
It came into force on 1 January 2006 and aims to lower trade tariffs among the SAARC members.

Step 3: Check the options:
1 January 2004 is the year of signing, not the start. So (A) is wrong.
1 January 2005 is also before the start. So (B) is wrong.
1 January 2006 is the date it began, so (C) is correct.
1 January 2007 is later than the start. So (D) is wrong.

Final Answer:
SAFTA came into effect on 1 January 2006, option (C).
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Question: 2

SAFTA is related to which one of the following regional organisations ?

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SAFTA is an agreement among the member countries of SAARC, the South Asian Association for Regional Cooperation.
Updated On: Nov 12, 2026
  • South Asian Association for Regional Cooperation (SAARC)
  • Association of South East Asian Nations (ASEAN)
  • European Union (EU)
  • Non-Aligned Movement (NAM)
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The Correct Option is A

Solution and Explanation

Step 1: Understand the question:
SAFTA stands for South Asian Free Trade Agreement. We must name the regional organisation connected to it.

Step 2: Recall the fact:
SAARC was founded in 1985 at Dhaka. Its early members were Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
SAFTA is the trade agreement among SAARC members. The passage also names neighbours such as Bhutan, Nepal and Sri Lanka.

Step 3: Check the options:
SAARC is the body behind SAFTA, so (A) is correct.
ASEAN is for South East Asia, so (B) is wrong.
The EU is a European body, so (C) is wrong.
NAM is a group of non-aligned countries and not a trade body, so (D) is wrong.

Final Answer:
SAFTA belongs to SAARC, option (A).
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Question: 3

What among the following was promised by SAFTA ?

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The name South Asian Free Trade Area gives the answer. SAFTA promised a free trade zone among the SAARC members.
Updated On: Nov 12, 2026
  • Formation of a free trade zone
  • Formation of a peaceful environment
  • Formation of a strong organisation
  • Formation of a cultural organisation
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The Correct Option is A

Solution and Explanation

Step 1: Understand the question:
The question asks what SAFTA promised to the member countries of South Asia.
The passage says SAFTA aims at lowering trade tariffs.

Step 2: Recall the facts:
SAFTA was signed in 2004 at the SAARC summit in Islamabad and came into force on 1 January 2006.
It promised to remove trade barriers in steps and to create a free trade zone in the region.

Step 3: Check every option:
Option (A), formation of a free trade zone, matches the promise of SAFTA. It is correct.
Option (B), a peaceful environment, is a hoped-for gain of better trade ties. It was not the promise of the agreement.
Option (C), a strong organisation, is wrong because SAFTA is an agreement under the existing organisation, SAARC, and not a new body.
Option (D), a cultural organisation, is wrong because SAFTA deals with trade and tariffs and not with culture.

Final Answer:
SAFTA promised the formation of a free trade zone, which is option (A).
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Question: 4

Which one of the following objective is true about the spirit behind the idea of SAFTA ?

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SAFTA stands for South Asian Free Trade Area. Its whole purpose is to lower tariffs so that goods can move freely across borders.
Updated On: Nov 13, 2026
  • To develop a sense of friendship and solidarity among its member nations.
  • To allow free trade across the borders.
  • To resolve cross-border issues with discussion.
  • To challenge superpowers in the contemporary world.
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The Correct Option is B

Solution and Explanation

Step 1: Read what the passage says about SAFTA:
The passage opens with the line "SAFTA aims at lowering trade tariffs."
It adds that India expects real economic benefits for all members from SAFTA.
It also says a region that trades more freely will cooperate better on political issues.

Step 2: Recall the idea behind SAFTA:
SAFTA is the South Asian Free Trade Area, agreed by the SAARC countries in 2004 and in force from 1 January 2006.
Its spirit is to cut customs duties among members so that trade across their borders becomes free and easy.

Step 3: Match the options with this spirit:
Option (A), friendship and solidarity, is a general SAARC goal. The passage does not give it as the spirit of SAFTA, and it even records fears among neighbours.
Option (B), allowing free trade across the borders, is exactly what lower tariffs and a free trade area mean. So (B) is correct.
Option (C), solving cross-border issues by discussion, is only a hoped-for result of closer trade, not the aim of SAFTA.
Option (D), challenging superpowers, is not mentioned anywhere in the passage.

Final Answer:
The spirit behind SAFTA is to allow free trade across the borders of South Asian countries, which is option (B).
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