Question

Read the following statements regarding Special Economic Zones (SEZs):
• SEZs are treated as foreign territory for trade operations and duties.
• SEZs were introduced to promote exports and attract investment.
• Goods moving from SEZs to the Domestic Tariff Area are generally subject to customs duties. Which of the following is correct?

• A. Only 1 and 2 are correct
• B. Only 2 and 3 are correct
• C. Only 1 and 3 are correct
• D. 1, 2 and 3 are correct

Hint:

SEZ Keywords: Export Promotion Foreign Investment Employment Generation Duty Benefits Infrastructure Development These are frequently tested in CUET Economics.

Answer 1

The Correct Option is D

Concept: Special Economic Zones (SEZs) are among the most important topics in Indian Economic Development and Economic Reforms. Recent CUET papers have repeatedly asked conceptual questions regarding SEZs, foreign investment, export promotion and trade liberalisation. SEZs were established to create internationally competitive business environments.

Step 1: Analyze Statement 1. Statement 1 says: SEZs are treated as foreign territory for trade operations and duties. This is correct. For customs and trade purposes, SEZs are considered outside the domestic customs territory. Therefore: \[ \boxed{\text{Statement 1 is correct}} \]

Step 2: Analyze Statement 2. SEZs were established to:
• Promote exports
• Increase foreign investment
• Generate employment
• Improve infrastructure Hence: \[ \boxed{\text{Statement 2 is correct}} \]

Step 3: Analyze Statement 3. When goods move from an SEZ into the Domestic Tariff Area (DTA), they are generally treated as imports. Consequently customs duties become applicable. Hence: \[ \boxed{\text{Statement 3 is correct}} \]

Step 4: Evaluate the options. Statement 1: Correct Statement 2: Correct Statement 3: Correct Therefore all statements are true.

Step 5: Final conclusion. \[ \boxed{\text{1, 2 and 3 are correct}} \] Hence, \[ \boxed{\text{Option (D)}} \]