MCQs on Special Economic Zones (SEZs) and its Policy- Indian Geography
Q1. What is the main purpose of establishing Special Economic Zones (SEZs) in India?
a) To promote tourism
b) To boost exports and attract foreign investment
c) To preserve the environment
d) To promote sports activities
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Correct Answer: b) To boost exports and attract foreign investment
Explanation: SEZs are established to boost exports, attract foreign investment, and promote economic growth.
Special Economic Zones (SEZs) are designated areas within a country that are subject to specific economic regulations and policies that differ from the rest of the country. These zones are created to attract foreign direct investment (FDI), promote economic growth, boost exports, and create employment opportunities. SEZs typically offer various incentives and benefits to businesses and investors that are not available in the broader national economy.
Q2. Which was the first Export Processing Zone (EPZ) set up in India?
a) Kandla
b) Santa Cruz
c) Cochin
d) Chennai
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Correct Answer: a) Kandla
Explanation: Kandla was the first EPZ set up in India in 1965. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. Seven more zones were set up thereafter.
Q3. Which of the following states in India has the highest number of SEZs?
a) Rajasthan
b) Maharashtra
c) Tamil Nadu
d) West Bengal
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Correct Answer: c) Tamil Nadu
Explanation: As of September 2022, Tamil Nadu had the highest number of operational Special Economic Zones (SEZs), followed by Maharashtra and Telangana. There were a total of 270 SEZs in India.
Q4. Which of the following is a type of SEZ?
a) Free Trade Zone
b) National Park
c) Wildlife Sanctuary
d) Heritage Site
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Correct Answer: a) Free Trade Zone
Explanation: Free Trade Zone is a type of SEZ that promotes trade and investment by offering various incentives.
Q5. Which of the following cities has an operational SEZ?
a) Mumbai
b) Kolkata
c) Jaipur
d) Lucknow
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Correct Answer: a) Mumbai
Explanation: Mumbai has an operational SEZ located at Santa Cruz.
Q6. In which year was the Special Economic Zones Act passed in India?
a) 2000
b) 2005
c) 2010
d) 2015
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d) 2015
Correct Answer: b) 2005
Explanation: The Special Economic Zones Act was passed in India in 2005. The Parliament passed the Special Economic Zones Act in 2005 after many consultations and deliberations. The Act came into force along with the SEZ Rules in 2006.
Q7. Which of the following states has an SEZ focused on the IT sector?
a) Kerala
b) Punjab
c) Haryana
d) West Bengal
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Correct Answer: a) Kerala
Explanation: Kerala has an SEZ focused on the IT sector, located in Cochin.
Q8. Which of the following is a benefit provided to companies operating in SEZs?
a) Tax incentives
b) Free land
c) Subsidized electricity
d) Free transportation
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Correct Answer: a) Tax incentives
Explanation: Companies operating in SEZs enjoy various benefits, including tax incentives.
Q9. Which of the following cities has an SEZ focused on the pharmaceutical sector?
a) Hyderabad
b) Bengaluru
c) Ahmedabad
d) Bhopal
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Correct Answer: a) Hyderabad
Explanation: Hyderabad has an SEZ focused on the pharmaceutical sector.
Q10. Which of the following is NOT a feature of SEZs?
a) Streamlined customs procedures
b) Duty-free imports
c) Tax-free exports
d) Government control over business operations
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Correct Answer: d) Government control over business operations
Explanation: SEZs offer a more liberal business environment with less government control over business operations.
Q11. Which Indian state has an SEZ focused on the textile sector?
a) Gujarat
b) Maharashtra
c) Tamil Nadu
d) Uttar Pradesh
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Correct Answer: a) Gujarat
Explanation: Gujarat has an SEZ focused on the textile sector.
Q12. Which of the following cities has an SEZ focused on the electronics sector?
a) Chennai
b) Noida
c) Pune
d) Kolkata
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Correct Answer: b) Noida
Explanation: Noida has an SEZ focused on the electronics sector.
Q13. Which of the following is a benefit provided to SEZ developers?
a) Exemption from income tax
b) Free land
c) Subsidized electricity
d) Free transportation
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Correct Answer: a) Exemption from income tax
Explanation: SEZ developers enjoy various benefits, including exemption from income tax.
Q14. Which of the following states has an SEZ focused on the gems and jewelry sector?
a) Rajasthan
b) Maharashtra
c) Tamil Nadu
d) West Bengal
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Correct Answer: a) Rajasthan
Explanation: Rajasthan has an SEZ focused on the gems and jewelry sector.
Q15. Which of the following cities has an SEZ focused on the food processing sector?
a) Mumbai
b) Kolkata
c) Jaipur
d) Lucknow
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Correct Answer: b) Kolkata
Explanation: Kolkata has an SEZ focused on the food processing sector.
Q16. Which of the following states has an SEZ focused on the aerospace sector?
a) Karnataka
b) Punjab
c) Haryana
d) West Bengal
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Correct Answer: a) Karnataka
Explanation: Karnataka has an SEZ focused on the aerospace sector.
Q17. Which of the following cities has an SEZ focused on the biotechnology sector?
a) Hyderabad
b) Bengaluru
c) Ahmedabad
d) Bhopal
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Correct Answer: b) Bengaluru
Explanation: Bengaluru has an SEZ focused on the biotechnology sector.
Q18. Which of the following states has an SEZ focused on the leather sector?
a) Gujarat
b) Maharashtra
c) Tamil Nadu
d) Uttar Pradesh
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Correct Answer: c) Tamil Nadu
Explanation: Tamil Nadu has an SEZ focused on the leather sector.
Q19. Which of the following cities has an SEZ focused on the automobile sector?
a) Chennai
b) Noida
c) Pune
d) Kolkata
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Correct Answer: c) Pune
Explanation: Pune has an SEZ focused on the automobile sector.
Q20. Which of the following states has an SEZ focused on the renewable energy sector?
a) Rajasthan
b) Maharashtra
c) Tamil Nadu
d) West Bengal
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Correct Answer: b) Maharashtra
Explanation: Maharashtra has an SEZ focused on the renewable energy sector.
Q21. In which year was the SEZ policy announced in India?
a) 1995
b) 2000
c) 2005
d) 2010
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Correct Answer: b) 2000