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RAS question

A Special Economic Zone (SEZ) in India is established under which Act?

Correct answer: (C) Special Economic Zones Act, 2005.

In India, a Special Economic Zone is established under the Special Economic Zones Act, 2005.

  1. (A)

    Foreign Trade (Development and Regulation) Act, 1992

  2. (B)

    Industrial Disputes Act, 1947

  3. (C)

    Special Economic Zones Act, 2005

  4. (D)

    Companies Act, 2013

Explanation

The Special Economic Zones Act, 2005 is the specific statute for SEZs in India. India Code identifies its long title as providing for the establishment, development and management of Special Economic Zones, and records enforcement from 10 February 2006 for key provisions. That is why option C is the only Act that directly answers the question. Tax holidays, customs duty exemptions and simplified procedures are not stand-alone schemes; they flow from the Act's chapters on establishment, single-window clearance and special fiscal provisions.

Why the other options are wrong

  • (A) The Foreign Trade (Development and Regulation) Act, 1992 regulates foreign trade policy; it is not the SEZ-specific law for establishment, development and management.
  • (B) The Industrial Disputes Act, 1947 deals with labour relations, not the creation or administration of Special Economic Zones.
  • (D) The Companies Act, 2013 governs company incorporation and corporate regulation, whereas an SEZ is established under a separate SEZ statute.

Concept

This tests the legal-institutional framework of India's industrial and external-sector policy. The trap is to separate the SEZ-specific statute from broader trade, labour and company laws.

Source

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