Home UPPSC Prelims 2025 Mock Test Series MCQs

Question

Which of the following is NOT a characteristic typically associated with Special Economic Zones (SEZs)?

  1. Tax incentives for businesses
  2. Simplified customs procedures
  3. Restrictions on foreign investment
  4. Improved infrastructure

Answer:

Option C: Restrictions on foreign investment

Detailed Solution:

The correct answer is “Restrictions on foreign investment”.

Special Economic Zones (SEZs) are designed to attract investment, particularly foreign investment. Restrictions on foreign investment would be counterproductive to the purpose of SEZs.