Special Economic Zones (SEZ) are developed to

2025

Special Economic Zones (SEZ) are developed to

  1. A.

    Generate additional economic activity throughout the country

  2. B.

    Beautify suburban areas

  3. C.

    Upgrade the facilities in the countryside

  4. D.

    Promote investment from domestic and foreign sources

Attempted by 3 students.

Show answer & explanation

Correct answer: D

Special Economic Zones (SEZ) are duty-free enclaves created under India's SEZ Act, 2005 to serve a defined bundle of national economic objectives, not a single narrow goal. Section 5 of the Act lists these objectives as: generation of additional economic activity, promotion of exports, promotion of investment from domestic and foreign sources, creation of employment opportunities, and development of infrastructure facilities.

  1. This item's released answer key isolates one of those listed objectives as the intended choice: the option describing capital-inflow facilitation, i.e. attracting investment from both within the country and from abroad through the zone's tax breaks, simplified customs procedures, and relaxed regulatory compliance.

  2. The remaining three options are checked against the same Section 5 list. Two of them (beautifying suburban areas, upgrading countryside facilities) describe municipal or rural-development activities that do not appear anywhere in the SEZ Act's objectives.

  3. The option describing generation of additional economic activity across the country is also a listed Section 5 objective in the abstract, but the specific released key for this competitive-exam item targets the investment-promotion clause rather than the general-activity clause.

Cross-check against each option's own value:

  • Generate additional economic activity throughout the country: restates the broader, country-wide growth objective from the same Section 5 list.

  • Beautify suburban areas: describes a municipal or urban-aesthetics activity, outside the SEZ Act's objectives.

  • Upgrade the facilities in the countryside: describes a rural-infrastructure activity, also outside the SEZ Act's objectives.

  • Promote investment from domestic and foreign sources: describes the specific capital-inflow-facilitation objective that this item's released key identifies as the answer.

Released key: "Promote investment from domestic and foreign sources." Note: the SEZ Act lists several co-equal aims, so the general-economic-activity phrasing can seem plausible too, but the documented answer key for this exact item targets the investment-specific clause.

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