Q1. What is a Special Economic Zone? Choose the most appropriate option from below.
A A unique zone which is subjected to higher taxes and duties.
B A special zone created in the capital of India for certain entities.
C A specially created area for those with income of 1 crore and above per annum.
D A duty-free enclave of development and is deemed as foreign territory for the purpose of trade, duties and tariffs. Correct
Explanation
A Special Economic Zone is a specifically notified area that receives special fiscal and regulatory treatment to promote trade, investment, manufacturing, and exports. In the conventional exam definition, it is treated as a duty-free enclave and is deemed foreign territory for trade, duties, and tariffs. A higher-tax zone is the opposite of the idea. It is not a zone created only in India’s capital. It is also not linked to individuals earning 1 crore or more per year; eligibility is based on notified economic activity and zone rules.