Question

What are the objectives of the SEZ Act?

1. To create additional economic activity.
2. To boost the export of goods and services.
3. To generate employment.
4. To boost domestic and foreign investments.

• A. iv only
• B. i only
• C. All of these
• D. ii only

Answer 1

Answer:

C. All of these

The Special Economic Zones (SEZ) Act

• The Special Economic Zones (SEZ) Act in India was passed by the Parliament in 2005 to provide a stable legal framework for the establishment, operation, and regulation of Special Economic Zones in the country.
• The primary objective of the SEZ Act was to promote exports, attract foreign investment, boost economic growth, and create employment opportunities. 
• The Act was followed by the implementation of the SEZ Rules in 2006 to provide detailed guidelines for the functioning and management of SEZs in the country.

Special Economic Zones (SEZs)

• Special Economic Zones (SEZs) are designated geographical regions within a country that have different sets of rules and regulations compared to the rest of the country.
• They are established to attract foreign direct investment, boost exports, and create employment opportunities.
• The distinct regulatory framework in SEZs often includes :
  • Tax incentives
  • Streamlined procedures
  • Relaxed labor and environmental regulations,
• The distinct regulatory framework make them attractive destinations for businesses to set up their operations.