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Question : The 1991 economic policy aimed to promote foreign trade through the establishment of:

 

Option 1: Special Economic Zones (SEZs)

Option 2: Export Processing Zones (EPZs)

Option 3: Free Trade Agreements (FTAs)

Option 4: Trade unions


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Special Economic Zones (SEZs)


Solution : The correct answer is (a) Special Economic Zones (SEZs)

The 1991 economic policy in India aimed to promote foreign trade through the establishment of Special Economic Zones (SEZs). SEZs are designated geographical areas within a country that are governed by special economic regulations and policies to attract foreign direct investment (FDI) and boost exports.

SEZs offer various incentives and benefits to businesses, including tax exemptions, duty-free imports and exports, streamlined customs procedures, relaxed labor laws, and infrastructure support. These zones are intended to create an investor-friendly environment, enhance competitiveness, and attract both domestic and foreign companies to engage in export-oriented activities.

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