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Q.

The main purpose of creating SEZs is:


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a

To boost local industries

b

To create more employment

c

Attract foreign investment

d

To check pollution  

answer is C.

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Detailed Solution

The government of India has set up special economic zones (SEZs) with the main objective of attracting foreign investment.
An SEZ is an area where the economic and commercial laws differ from the rest of the country. The companies have far greater flexibility, and they also have access to better infrastructure. Additionally, the companies don’t have to pay taxes in the initial five years and have flexibility in labour laws. Other objectives of the SEZ Act are to create additional economic activity, boost the exports of goods and services, generate employment, etc.
 
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