Previous Year Question
Special Economic Zone (SEZ) Act became effective in
2004
2005
2006
2007
Correct Answer: C
Detailed Solution
The Special Economic Zones Act, 2005 was enacted to provide a comprehensive statutory framework for Special Economic Zones (SEZs) in India.
The Act received Presidential assent on 23 June 2005, but its principal provisions came into force on 10 February 2006. The SEZ Rules, 2006 also came into effect on the same date.
Therefore, it is important to distinguish between 2005 in the title of the Act and 2006 as the year in which it became effective.
The major objectives of the SEZ Act included generation of additional economic activity, promotion of exports of goods and services, promotion of domestic and foreign investment, creation of employment opportunities and development of infrastructure facilities.
The SEZ framework itself did not begin with this Act. India's SEZ Policy was introduced in April 2000; the SEZ Act, 2005 and SEZ Rules, 2006 subsequently provided statutory backing to the framework.
Therefore, remember—
SEZ Policy → 2000
SEZ Act → 2005
Act/Rules effective → 10 February 2006