ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -SEZs can help attract investment, create jobs and boost exports – both directly and indirectly, where they succeed in building linkages with the broader economy. Zones can also support global value chain (GVC) participation, industrial upgrading and diversification. Zones are a key investment promotion tool.

Detailed explanation-2: -SEZs are usually created in order to facilitate rapid economic growth in certain geographic regions. This economic growth is accomplished by leveraging tax incentives as a way of attracting foreign dollars and technological advancement.

Detailed explanation-3: -Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. In order words, SEZ is a geographical region that has economic laws different from a country’s typical economic laws.

Detailed explanation-4: -SEZs are to have world class facilities, such as electricity, water, roads, transport, storage, recreational & educational facilities. flexibility in labour laws. Establishment of Special Economic Zones, which would provide the industries and factories world class facilities like constant electricity, water, etc.