Which one of the following countries is not a member of the South Asian Free Trade Area (SAFTA) agreement?

Introduction / Context:

This question relates to regional economic groupings in South Asia. The South Asian Free Trade Area, or SAFTA, is an agreement among members of the South Asian Association for Regional Cooperation to promote trade liberalisation in the region. Exams often test who is and who is not a member, because it reflects both geography and regional economic cooperation patterns.

Given Data / Assumptions:

Concept / Approach:

SAFTA is essentially a trade agreement among SAARC countries. The core SAARC members include India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives, and later Afghanistan. China does not belong to SAARC and therefore is not part of SAFTA. Sri Lanka, Bhutan, and India all are SAARC members and thus fall within the SAFTA framework. The approach is to recall this membership list and identify the outsider country among the options.

Step-by-Step Solution:

Verification / Alternative check:

A quick cross check is to recall broader regional groupings. China participates in other regional forums such as the Shanghai Cooperation Organisation and is a major power in East Asia, but it is not a member of the South Asian Association for Regional Cooperation. Also, most exam summaries of SAFTA explicitly list the eight South Asian signatories and none of them is China. This confirms that China is outside SAFTA membership.

Why Other Options Are Wrong:

Sri Lanka: It is a founding member of SAARC and a participant in SAFTA, so it is not the correct choice.

Bhutan: Bhutan is also a SAARC member and thereby a SAFTA member, so it cannot be the country that is not part of SAFTA.

India: India is a key SAARC founder and a main participant in SAFTA, and therefore it is clearly within the agreement.

Common Pitfalls:

Some students may overthink and suspect that a smaller South Asian country like Bhutan is excluded, simply because they are less familiar with its role in regional groupings. Others may mix up SAFTA with wider Asia Pacific trade agreements where China is a participant. To avoid such confusion, it is important to tie SAFTA tightly to SAARC membership in one's memory and to remember that all SAARC states are part of SAFTA.

Final Answer:

The correct answer is China.