Question

Q. Regarding the SEZs, consider the following statements.

Select the correct answer using the codes given below.

• A. 1 only
• B. 2 only
• C. 1 and 2 only
• D. 1 and 3 only

Answer 1

The correct option is D 1 and 3 only

Explanation:

• Statement 1 is correct. Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for trade operations and duties and tariffs. In other words, SEZ is a geographical region that has economic laws different from a country's typical economic laws. Usually, the goal is to increase foreign investments.
• Statement 2 is incorrect. SEZs of China are much more successful than India because of larger sizes, greater connectivity, and better infrastructure available there.
• Statement 3 is correct. To augment the functioning of the SEZs and to drive maximum benefits out of them, the government constituted the Baba Kalyani Committee. The committee recommended considering the SEZs as Employment and Economic Enclaves and relook at the sunset clauses.