Correct Option
The Special Economic Zones (SEZ) Act, 2005, which became effective in February 2006, was enacted with several primary objectives to foster economic growth and boost exports. Key objectives of the Act include:
- Generation of additional economic activity.
- Promotion of exports of both goods and services.
- Promotion of investment from domestic and foreign sources.
- Creation of employment opportunities.
- Development of infrastructure facilities.
Statement 1, "Development of infrastructure facilities," directly aligns with one of the core objectives of the SEZ Act, which emphasizes creating world-class infrastructure to support industrial and economic activities.
Statement 2, "Promotion of investment from foreign sources," is also a fundamental objective. SEZs are designed to attract both domestic and foreign direct investment by offering a conducive business environment.
Statement 3, "Promotion of exports of services only," is inaccurate. The SEZ Act explicitly aims to promote the export of both goods and services, not exclusively services. The word "only" makes this statement incorrect.
Therefore, statements 1 and 2 correctly represent the objectives of the SEZ Act, 2005.
Incorrect Options
Options 2, 3, and 4 are incorrect because they either include statement 3, which misrepresents the scope of export promotion by limiting it to "services only," or they exclude valid objectives such as the development of infrastructure facilities (statement 1). The SEZ Act's mandate is comprehensive, covering the promotion of exports for both goods and services, alongside investment attraction and infrastructure development.