India has a regional trade agreement called SAFTA. This pact is signed with the members of which regional grouping of countries?

Introduction / Context:
South Asian Free Trade Area (SAFTA) is a frequently asked topic in exams on Indian economy and international groupings. This question checks whether you know with which regional grouping of countries India has signed the SAFTA trade agreement, and whether you can distinguish it from other famous groupings like the European Union or OPEC.

Given Data / Assumptions:

• SAFTA stands for South Asian Free Trade Area.
• The question asks which regional grouping of countries is associated with SAFTA.
• Options include IBSA, EU, OPEC and SAARC.

Concept / Approach:
SAFTA is a free trade arrangement among the member nations of SAARC, the South Asian Association for Regional Cooperation. SAARC includes countries like India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives and Afghanistan. The idea of SAFTA is to reduce tariff and non-tariff barriers among these South Asian economies so that trade within the region increases. To answer the question, we need to recall which organisation SAFTA is legally linked with and created by – this is SAARC, not IBSA, EU or OPEC.

Step-by-Step Solution:
Step 1: Recall the full form of SAFTA – South Asian Free Trade Area.Step 2: Identify which body represents South Asia regionally – South Asian Association for Regional Cooperation (SAARC).Step 3: Note that SAFTA is a trade agreement that operates under the umbrella of SAARC and applies to its member states.Step 4: Compare with the options: IBSA is a dialogue forum of India, Brazil and South Africa; EU is a political and economic union of European states; OPEC is an oil producers cartel.Step 5: Therefore, only SAARC correctly matches SAFTA as its associated regional grouping.

Verification / Alternative check:
An alternative way to verify is to remember common exam facts: “SAARC – SAFTA” is a standard pair. Many questions mention that SAFTA was signed at a SAARC Summit (Islamabad 2004) and entered into force in 2006. No similar link is ever mentioned between SAFTA and IBSA, EU or OPEC. Thus, this cross-check reinforces that SAARC is the only correct choice.

Why Other Options Are Wrong:

• IBSA: A trilateral forum connecting India, Brazil and South Africa for South–South cooperation, not a South Asian regional trade bloc.
• EU: The European Union is an economic and political union of European countries, but SAFTA does not operate under the EU framework.
• OPEC: Organization of the Petroleum Exporting Countries is a cartel of oil-producing nations; it deals with oil output and prices, not a South Asian free trade area.

Common Pitfalls:
Candidates sometimes confuse SAFTA with other free trade or cooperation frameworks like ASEAN Free Trade Area (AFTA) or with IBSA, because IBSA also involves India and includes the word “South”. Another common confusion is to assume that any internationally known grouping such as EU or OPEC must be the answer. Always link SAFTA to “South Asia” and then to SAARC to avoid this mistake.

Final Answer:
The SAFTA agreement is associated with the South Asian Association for Regional Cooperation member countries, so the correct answer is SAARC.