With reference to the Special Economic Zone(SEZ), consider the following statements: SEZ is a geographical region that has economic laws different from a country's typical economic laws. The incentives offered to SEZs are no application of labour laws and single window clearance. Which of the statements given above is/are correct?

Q. With reference to the Special Economic Zone(SEZ), consider the following statements:
1 SEZ is a geographical region that has economic laws different from a country’s typical economic laws.
2 The incentives offered to SEZs are no application of labour laws and single window clearance.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

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.

Normal labour laws are applicable to SEZs, which are enforced by the respective state governments.
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