Special Economic Zones are being set up by the Government in order to attract:

Question

Question

This question was previously asked in

SSC GD Previous Paper 12 (Held On: 15 Feb 2019 Shift 1)

Answer 1

The Correct Answer is Foreign companies.

Key Points

Special Economic Zones are being set up by the Government in order to attract foreign companies.
A Special Economic Zone (SEZ) is an area in a country that is subject to economic regulations that are different from those in other regions of the same country.
The economic regulations of the SEZ aim to promote and attract foreign direct investment (FDI).
FDI refers to any investment in business interests located in another country made by a firm or person in one country.
There are usually additional economic benefits for them when a country or person conducts business in an SEZ, including tax incentives and the ability to pay lower tariffs.
SEZs are typically established in some geographic regions to promote rapid economic development.
This economic growth is done by the leverage of tax incentives as a means of attracting foreign dollars and developing technology.