UPSC Prelims 2010 · General Studies
Question 18: Economy and Social Development
The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following :
- 1.Development of infrastructure facilities.
- 2.Promotion of investment from foreign sources.
- 3.Promotion of exports of services only.
Which of the above are the objectives of this Act ?
AnswerThe answer is (a).
The SEZ Act, 2005 (in force from February 2006) aims at generating additional economic activity, promoting exports of goods and services, promoting investment from domestic and foreign sources, creating employment and developing infrastructure. Statement 3 is wrong because export promotion is not limited to services; goods are covered equally. Remember: the word 'only' makes statement 3 wrong; SEZs serve goods and services exports.
- 1. Developing infrastructure facilities is a stated objective.
- 2. Promotion of investment from domestic and foreign sources is an objective.
- 3. The Act promotes exports of goods and services, not services only.
How you could have got this
- If you were sure statement 3 is not correct, (b), (c) and (d) go: each of them includes 3.
What you needed to know: The Act promotes exports of goods and services, not services only.
The red flag in statement 3 is “only”. In UPSC’s papers, statements with “only” were true 27% of the time (82 statements). A hint, not a rule.
Only (a) is left. You didn’t need statements 1 or 2.
This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Right: infrastructure and foreign investment are objectives; exports of services 'only' is not.
- (b) Exports of goods are promoted as well, so 'only' is wrong.
- (c) Statement 3 is wrong, so this cannot be right.
- (d) Statement 3 would make all three correct, but it is wrong.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2010, General Studies, Series A. The paper on upsc.gov.in.