Which one among the following is not true for Special Economic Zones?

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Q: 42 (CDS-I/2011)
Which one among the following is not true for Special Economic Zones?

question_subject: 

Economics

question_exam: 

CDS-I

stats: 

0,7,33,13,6,7,14

keywords: 

{'special economic zones': [0, 0, 1, 2], 'customs authorities': [0, 0, 0, 1], 'licence': [0, 0, 0, 3], 'export': [0, 0, 1, 0], 'manufacturing': [3, 0, 2, 9], 'service activities': [0, 0, 0, 1], 'cargo': [0, 0, 1, 1], 'import': [0, 0, 2, 6], 'permission': [1, 1, 0, 3]}

The correct answer is option 3: No permission for subcontracting is not true for Special Economic Zones (SEZs).

Let`s take a closer look at each option:

1. Option 1: No license is required for import - This is true for SEZs. The SEZs provide certain exemptions and relaxations to promote foreign trade, and one of them is the exemption from obtaining a license for imports.

2. Option 2: Manufacturing and service activities are allowed - This is also true for SEZs. SEZs are designated areas where both manufacturing and service activities are allowed. The objective is to attract investments, increase exports, and generate employment.

3. Option 3: No permission for subcontracting - This statement is not true. SEZ units are allowed to subcontract their activities or production processes to other entities, both within and outside the SEZ, with certain guidelines and conditions.

4. Option 4: No routine examination of cargo for export/import by customs authorities - This is true for SEZs. To expedite trade and reduce bureaucratic red tape, SEZs are given the benefit of limited customs intervention, leading to no routine examination of cargo for export/import by customs authorities.

In summary, option 3 is the correct answer

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