Question

Q. Consider the following statements comparing the features of Special Economic Zones (SEZs) and National Investment and Manufacturing Zones (NIMZ):

Select the correct answer using the codes given below:

• A. 1 and 2 only
• B. 2 only
• C. 3 only
• D. All of the above

Answer 1

The correct option is C 3 only

Explanation:

• Statement 1 is incorrect. SEZs have statutory status and they have been formed under the Special Economic Zones Act of 2005 whereas NIMZ has been established under the National Manufacturing Policy 2011.
• Statement 2 is incorrect. Minimum area required to delineate territory as SEZ is 1000 hectares whereas to delineate an area as NIMZ, the minimum area required is 5000 hectares.
• Statement 3 is correct. SEZs are mainly to promote exports from the country as they are delineated as duty-free enclaves for the purpose of exports, trade, and tariffs. NIMZ has been conceived to enhance the share of manufacturing in the GDP by having industrial townships or industrial corridors.