Maharashtra State PSC Model Paper 5

The correct answer is all of the above.

• Special Economic Zones (SEZs):
  • An SEZ is an enclave within a country that is typically duty-free and has different business and commercial laws chiefly to encourage investment and create employment.
  • In this zone, industries get some tax advantages.
  • The Parliament passed the Special Economic Zones Act in 2005 after many consultations and deliberations and it came into force in 2006.
  • SEZs were operational in India from 2000 to 2006 (under the EXIM policy/Foreign Trade Policy).
• Special Economic Zones Act, 2005
  • "It is defined as an Act to provide for the establishment, development, and management of the Special Economic Zones for the promotion of exports and for matters connected therewith or incidental thereto".
• Objectives of the SEZs Act are:
  • To create further economic activity.
  • To encourage the export of goods and services.
  • To provide employment.
  • To boost domestic and foreign investments.
  • To develop infrastructure facilities.
• SEZs can be set up by:
  • Any private/public/joint sector
  • State Government or its agencies
  • Foreign Company