DAILY CURRENT AFFAIRS QUIZ – 23 December, 2025

Explanation
Safeguard clauses permit temporary protection when domestic industries face injury due to increased imports. They help manage adjustment costs arising from trade liberalisation. Such clauses balance openness with economic stability. FTAs do not guarantee subsidies or uniform pricing. Safeguards enhance political and social acceptability of FTAs. Therefore, option B is correct.

Explanation
FTA implementation requires coordination between commerce, agriculture, industry, customs, and regulatory agencies. Indian states are also affected, especially in agriculture and industry. Coordination gaps often lead to uneven preparedness across sectors. Trade policy is constitutionally a Union subject, so option A is incorrect. Private sector involvement exists but coordination remains the key challenge.

Explanation
India’s comparative advantage lies strongly in IT and knowledge-based services. FTAs increasingly focus on services trade, professional mobility, and digital delivery. Improved market access benefits Indian IT firms through reduced regulatory barriers. Dairy remains a sensitive sector, while coal and food procurement are largely domestic policy areas. Hence, IT services stand to gain the most.

Explanation
FTAs require coordinated action by multiple ministries, regulators, and enforcement agencies. They involve policy formulation, regulation, monitoring, and dispute resolution. This places FTAs squarely within the domain of economic administration. They test state capacity in negotiation, coordination, and implementation. FTAs are not judicial or fiscal instruments. Therefore, they are best viewed as tools of economic governance.

Explanation
The India–New Zealand FTA aims to significantly expand bilateral trade volumes. Both countries have expressed the goal of doubling trade within five years through tariff reduction, services liberalisation, and improved market access. The agreement complements WTO commitments rather than replacing them. It does not involve monetary integration or a customs union. The focus is on trade facilitation and economic cooperation. Hence, option B is correct.