Question : Which international trade agreement promoted trade liberalization in India?
Option 1: ASEAN Free Trade Agreement
Option 2: SAARC Preferential Trade Agreement
Option 3: South Asian Free Trade Area (SAFTA)
Option 4: Comprehensive Economic Cooperation Agreement (CECA)
Correct Answer: South Asian Free Trade Area (SAFTA)
Solution : The correct answer is (c) South Asian Free Trade Area (SAFTA).
SAFTA is a trade agreement between the member states of the South Asian Association for Regional Cooperation (SAARC). It was signed in 2004 and came into force in 2006. The agreement aims to reduce tariffs and other barriers to trade between SAARC countries. It has been credited with promoting trade liberalization in India, which is a member of SAARC.
