India and Oman Set to Ink Crucial Free Trade Agreement

सही उत्तर: B

Statement 1 is correct as CEPA's primary goal is to enhance trade across goods, services, and investment by reducing barriers. Statement 3 is correct as the agreement is part of India's broader strategy for economic expansion and energy security in the Indo-Pacific. Statement 2 is incorrect. While Oman is a strategic partner and has oil reserves, its primary strategic importance for India in terms of access is to the Arabian Sea and the Indian Ocean, not the Mediterranean Sea. Access to the Mediterranean is typically via the Suez Canal or other routes further north.

सही उत्तर: A

Option A is correct. A Free Trade Agreement (FTA) primarily focuses on reducing or eliminating tariffs and non-tariff barriers on trade in goods. A Comprehensive Economic Partnership Agreement (CEPA) is a broader and more ambitious form of agreement that goes beyond goods to include services, investment, competition, intellectual property rights, and other areas of economic cooperation. Option B is incorrect; a common external tariff is a feature of a Customs Union, not typically an FTA or CEPA. Option C is incorrect; both aim to reduce both tariffs and non-tariff barriers, but CEPA is more comprehensive. Option D is incorrect; a CEPA is a more advanced and comprehensive form of agreement than a typical FTA.

सही उत्तर: D

Option D is incorrect. While India has deep economic and strategic ties with GCC countries, there has been no prioritization or even discussion of establishing a common currency union between India and all GCC member states. This is a highly complex form of economic integration typically seen within regional blocs like the Eurozone. Options A, B, and C are all characteristic features of India's multi-faceted engagement with GCC countries, reflecting its energy needs, strategic interests, and economic partnerships.

सही उत्तर: C

Statement 1 is correct. 'Trade creation' occurs when an FTA leads to a shift in production from a high-cost domestic producer to a more efficient producer in a partner country, benefiting consumers through lower prices and increased variety. Statement 2 is correct. 'Trade diversion' is a potential negative outcome where trade shifts from a more efficient non-FTA country (which still faces tariffs) to a less efficient FTA partner (which benefits from zero tariffs), potentially leading to a less optimal global allocation of resources. Statement 3 is incorrect. The purpose of FTAs is to reduce both tariff and non-tariff barriers. While countries might maintain or introduce some regulatory measures, the general aim is to reduce, not introduce new, non-tariff barriers within the FTA framework.