Question 2 - MCQ Questions (1 Mark) - Chapter 4 Class 10 Economics - Globalisation and the Indian Economy - Economics

What is the idea behind the development of Special Economic Zones (SEZs) in India?

(A) To boost Indian industries.

(B) To solve the problem of unemployment.

(C) To produce handicrafts.

(D) To attract foreign investment.

Answer: 

So, the correct answer is (D): To attract foreign investment. 

Explanation

• In order to attract foreign companies to invest in India , Government set up industrial Zones known as Special Economic Zones (SEZs).
• Special Economic Zones (SEZs) provide facilities such as infrastructure: roads, water, power, transportation, storage, and recreational and educational facilities to foreign companies.