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 o

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Q: 18 (IAS/2010)
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 ?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,112,37,112,4,9,24

keywords: 

{'sez act': [0, 0, 1, 0], 'objectives': [2, 1, 4, 11], 'certain objectives': [0, 0, 1, 0], 'infrastructure facilities': [0, 0, 1, 0], 'exports': [0, 0, 2, 1], 'act': [7, 1, 13, 45], 'development': [11, 4, 15, 44], 'promotion': [1, 0, 5, 7], 'investment': [0, 0, 0, 1], 'services': [0, 0, 7, 17], 'foreign sources': [0, 0, 1, 0]}

The correct answer is 1 and 2 only.

Explanation: The Special Economic Zones (SEZ) Act, 2005 was enacted to provide a framework for the establishment, development and management of Special Economic Zones for the promotion of exports. The objectives of this Act are to promote exports, promote investment from domestic and foreign sources, create employment opportunities, and develop infrastructure facilities. Therefore, statement 1 and 2 are correct. Statement 3 is incorrect because SEZs are meant for the promotion of exports of goods and services, and not services only.