Comprehension
Read the passage given below carefully and answer the questions that follow : The South Asian Association for Regional Co-operation (SAARC) is a major regional initiative by the South Asian states to evolve co-operation through multilateral means. It began in 1985. Unfortunately due to persisting political differences, SAARC has not had much success. SAARC members signed the South Asian Free Trade Agreement (SAFTA) in 2002 which promised the formation of a free trade zone for the whole of South Asia.
Question: 1

Which one of the following South Asian countries is not a founder member of South Asian Association for Regional Co-operation (SAARC) ?

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SAARC was established in 1985 with 7 founding members. Afghanistan joined as the 8th official member much later in April 2007.
Updated On: Aug 11, 2026
  • Nepal
  • Bhutan
  • Afghanistan
  • Bangladesh
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The Correct Option is C

Solution and Explanation

Concept: The South Asian Association for Regional Cooperation (SAARC) was founded in Dhaka on December 8, 1985, with seven founding member nations from the South Asian region.

Step 1:
Listing the original founding member countries of SAARC.
The 7 original founding members of SAARC in 1985 were:
• Bangladesh
• Bhutan
• India
• Maldives
• Nepal
• Pakistan
• Sri Lanka

Step 2:
Identifying the country added at a later stage.
Afghanistan was admitted as the 8th member of SAARC during the 14th SAARC Summit held in New Delhi in April 2007. Therefore, Afghanistan is not a founder member of SAARC.
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Question: 2

The external power that affects the South Asian Countries the most is :

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The US and China are the key external powers influencing South Asian geopolitics, with the United States maintaining direct economic, strategic, and diplomatic engagement across South Asia.
Updated On: Aug 11, 2026
  • United States of America
  • Russia
  • France
  • Britain
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The Correct Option is A

Solution and Explanation

Concept: No region exists in isolation. External super powers significantly influence regional stability, economic development, security affairs, and bilateral disputes among South Asian countries.

Step 1:
Analyzing the role of outside powers in South Asia.
According to NCERT contemporary world politics, the key outside major powers active in South Asian regional geopolitics are the United States of America (USA) and China.

Step 2:
Evaluating the influence of the USA in the region.
Post-Cold War economic reforms, globalization, strategic interest in peace between nuclear-armed neighbours (India and Pakistan), and market involvement make the United States of America the predominant external superpower deeply involved in South Asian affairs and bilateral diplomacy.
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Question: 3

The major objective of South Asian Association for Regional Co-operation is –

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Article 1 of the SAARC Charter mandates promoting the welfare of the peoples of South Asia, accelerating economic growth, social progress, and cultural development in the region.
Updated On: Aug 11, 2026
  • to become a contemporary centre of power in the World.
  • to establish a common currency for the regional organisation for its economic development.
  • to solve all regional conflicts without interference of external powers.
  • to co-operate member states for economic growth, social progress and cultural development through multilateral means.
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The Correct Option is D

Solution and Explanation

Concept: SAARC was established as a regional platform designed to foster mutual understanding, collective self-reliance, economic collaboration, and socio-cultural progress among South Asian nations through peaceful multilateral efforts.

Step 1:
Extracting the primary objective from the passage and SAARC Charter.
As stated in the passage, *"The South Asian Association for Regional Co-operation (SAARC) is a major regional initiative by the South Asian states to evolve co-operation through multilateral means."*

Step 2:
Comparing against the given options.

• Option (A) is incorrect as SAARC is not structured as an aggressive political power bloc.
• Option (B) is incorrect because SAARC has no charter proposal for a single unified common currency.
• Option (C) is incorrect because bilateral political disputes are explicitly excluded from official SAARC forums.
• Option (D) accurately states the foundational objective: promoting welfare, economic growth, social progress, and cultural development through mutual multilateral cooperation.
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Question: 4

Which one of the following is NOT a core objective of South Asian Free Trade Agreement (SAFTA) ?

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SAFTA pledged to lower tariffs and eliminate trade barriers across South Asia, but it does not deal with monetary union or adopting a common regional currency.
Updated On: Aug 11, 2026
  • To establish a common currency for SAARC nations.
  • To promote and enhance mutual trade and economic co-operation.
  • To reduce custom duties and non-tariff barriers.
  • To create a free trade area among member states.
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The Correct Option is A

Solution and Explanation

Concept: The South Asian Free Trade Agreement (SAFTA) was signed in 2004 during the 12th SAARC Summit in Islamabad to establish a free trade zone across South Asia by lowering tariffs and trade barriers.

Step 1:
Identifying core objectives of SAFTA.
The fundamental aims of SAFTA include:
• Reducing trade tariffs, custom duties, and non-tariff barriers among member nations.
• Expanding regional economic cooperation and intra-regional trade.
• Creating a seamless free trade area across the South Asian subcontinent.

Step 2:
Spotting the incorrect statement.
Establishing a common monetary currency (like the Euro in the EU) is NOT an objective of SAFTA or SAARC. SAFTA focuses purely on trade liberalization, tariff reduction, and commercial flow, not monetary integration. Thus, Option (A) is NOT a core objective.
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