The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following:.
- 1.Development of infrastructure facilities.
- 2.Promotion of investment from foreign sources.
- 3.Promotion of exports of services only.
Which of the above are the objectives of this Act?
- A.1 and 2 only
- B.3 only
- C.2 and 3 only
- D.1, 2 and 3
▶ Answer & Explanation
Correct answer: A. 1 and 2 only
The SEZ Act of 2005 aims to create SEZs as global manufacturing and trading hubs. Key objectives include developing world-class infrastructure within these zones to attract investments, both domestic and foreign. Furthermore, the act promotes the export of goods and services, not exclusively services. Therefore, the development of infrastructure and promotion of foreign investment are core objectives, while the restriction to 'services only' for exports is inaccurate.
Source: UPSC gs1 2010