The idea of demarcating certain areas within the country as special economic zones to promote investment and growth is not new. A large country unable to provide the kind of facilities and environment that can attract foreign investment throughout the country often finds it feasible and attractive to carve up some of its areas where such facilities can be provided. The laws and procedures for setting up new industries are waived to make the area business-friendly with developed infrastructure and a one-window interaction with government. In addition, huge tax benefits are promised to lure investors. China’s experience shows that if chalked out and implemented with care such a policy can accelerate the flow of capital and technology from abroad and thereby speed up growth.
However, SEZs may not be the best option in all situations to clear the bottlenecks in growth. India’s experience with export processing zones (EPZs) bears this out. They have failed in India for the simple reason that the factors that made the SEZs successful in China have been absent here. In India, as in China, EPZs were thought of as a way of providing an escape route from the stranglehold of control that prevailed over the Indian economy. But even while promising to ease the rigours of controls, Indian policy-makers could not give up their pen chant for micromanaging from the centre and undoing the promised relaxations with all kinds of qualifications and “guidelines”.
Over last two decades India has evolved into a market economy and much of governmental control has disappeared, but the flow of foreign direct investment has not reached anywhere near the levels of China. Besides, infrastructure building has fallen far short of what is required. Even after three years of the enactment of the Electricity Act (2003), private investment in electricity generation is still a trickle with the states refusing to give up the monopoly of their electricity boards in the matter of purchase of the power generated. While swearing by growth, governments at both the centre and the states cite the fiscal responsibility laws to plead their helplessness in making the required investments to improve infrastructure.
Given the situation, the SEZs have apparently been thought of as a simple way out. In its enthusiasm for SEZs the commerce ministry forgot two critical lessons of the Chinese experi ence, viz., that an SEZ must be of an adequate size to provide opportunities for reaping the benefits of large-scale operations and their number should be few. Every industry or economic activity worth its name is now seeking SEZ status. Proposals are now being floated to invite foreign educational institutions to come to India with promises of SEZ treatment! The finance ministry apprehends a loss of nearly 1,75,000 crore in direct taxes, customs duties and excise duties over the next five years.
The objective of the author in writing the above passage seems to be to
Show Hint
- Distinguish between merely presenting pros/cons and actively opposing/supporting something.
- highlight the failure of Indian policy makers regarding EPZs.
- narrate the pros and cons of SEZs.
- compare between the Indian EPZs and Chinese SEZs.
- oppose the proliferation of SEZs in India.
- argue that India should imitate the Chinese policies regarding SEZs.
The Correct Option is D
Solution and Explanation
Step 2: He highlights India’s failures with EPZs due to excessive government control, weak infrastructure, and lack of foreign investment.
Step 3: In the concluding section, the author criticizes India’s current enthusiasm for SEZs, noting that too many proposals and misuse (like foreign educational institutions seeking SEZ status) could cause huge tax losses.
Step 4: Hence, the author’s main purpose is not simply comparing or narrating pros/cons, but specifically opposing the uncontrolled proliferation of SEZs.
Final Answer: (D).
The author’s arguments suggest the following conclusions, except
Show Hint
- “Except” questions require eliminating all options that match the text and picking the one that does not.
- SEZs may be the best option for countries unable to provide infrastructure and business environment to attract foreign direct investment.
- SEZs must be large enough to house large scale operations.
- fiscal responsibility laws actually limit the investment on infrastructure by the Government of India.
- government of India must limit the number of SEZs.
- SEZs cause loss of tax revenue for the central Government.
The Correct Option is C
Solution and Explanation
Step 2: The author does not claim that the laws themselves {actually limit} investment—only that governments use them as a justification.
Step 3: The other options (A, B, D, E) are directly supported:
- (A) aligns with the introduction.
- (B) stated explicitly as a lesson from China.
- (D) another Chinese lesson about limiting numbers.
- (E) tax loss mentioned in conclusion.
Thus, the “except” answer is (C).
The author does not oppose
Show Hint
- Sometimes, the “not opposed” option is something the author mentions positively.
- SEZ treatment of foreign educational institutes in India.
- qualifiers undoing relaxation of government control.
- tax benefits to strategically promote SEZs.
- monopoly of state electricity boards in power purchase.
- lack of Government initiative in infrastructure development.
The Correct Option is C
Solution and Explanation
Step 2: However, the author does not oppose {tax benefits to promote SEZs strategically}. In fact, he accepts that tax benefits are one of the measures to attract investors, provided SEZs are planned carefully.
Step 3: Hence, only option (C) is not opposed.
The passage was most likely written in the year:
Show Hint
- Phrases like “after three years” are strong indicators of timing.
- 1991
- 2001
- 2003
- 2006
- 2011
The Correct Option is D
Solution and Explanation
Step 2: Options before 2003 (1991, 2001) cannot be correct since the Act had not yet been passed.
Step 3: Options after 2006 (2011) are too late, as the reference is immediate (“even after three years”).
Step 4: Therefore, the best answer is 2006.
Top Questions on Reading Comprehension
Trade is essentially the buying and selling of items produced elsewhere. All the services in retail and wholesale trading or commerce are specifically intended for profit. The towns and cities where all these works take place are known as trading centres. The rise of trading from barter at the local level to money-exchange on an international scale has produced many centres and institutions, such as trading centres or collection and distribution points.
Trading centres may be divided into rural and urban marketing centres. Rural marketing centres cater to nearby settlements. These are quasi-urban centres. They serve as trading centres of the most rudimentary type. Here, personal and professional services are not well-developed. These form local collecting and distributing centres. Most of these have mandis (wholesale markets) and also retailing areas. They are not urban centres per se but are significant centres for making available goods and services which are most frequently demanded by rural folk.
Periodic markets in rural areas are found where there are no regular markets and local periodic markets are organised at different temporal intervals. These may be weekly, bi-weekly markets where people from the surrounding areas meet their temporally accumulated demand. These markets are held on specified dates and move from one place to another. The shopkeepers, thus, remain busy all day while a large area is served by them.
Urban marketing centres have more widely specialised urban services. They provide ordinary goods and services as well as many of the specialised goods and services required by people. Ur- ban centres, therefore, offer manufactured goods as well as many specialised developed markets, e.g. markets for labour, housing, semi-or finished products. Services of educational institutions and professionals such as teachers, lawyers, consultants, physicians, dentists and veterinary doctors are available.- CUET (UG) - 2025
- Geography
- Reading Comprehension
- India even now possesses a wealth of manuscripts running into many millions. Tradi- tionally, they were written on materials such as birch bark (bh¯urja pattra) and palm leaves. Birch bark was mainly used for north Indian scripts, and the writing was done with ink made of finely ground charcoal powder in a medium of gum, or soot from oil lamps. With palm leaves, there was no ink; rather, a sharp point was used to tear the leaf’s surface film; it would then be smeared with a paste of charcoal powder mixed in oil.
The art of paper making was introduced into India by the 11th century CE, perhaps from China through Nepal. The earliest extant Indian paper manuscript is dateable to 1105 CE; it was made from the fibers of a mountain plant. By the later half of the 15th century, Kashmir was producing paper of attractive quality from the pulps of rags and hemp, with lime and soda added to whiten the pulp. Sialkot, Zafarabad, Patna, Murshidabad, Ahmedabad, Aurangabad and Mysore were among the well- known centers of paper production.- CUET (UG) - 2025
- Knowledge Tradition - Practices India
- Reading Comprehension
- The arena is also described in the Mallapurāṇa. It is not the mat as is used to-day. The arena is known as ākhādhaka. It is high, levelled and low. Its dimensions are three devamāna (101 hastas or cubits), daityamāna (50 hastas) and martyamāna (21 hastas). It is square, triangular and circular. The earth with kankar, iron, wood, stone, thorn etc. should be avoided. It appears that the general dimension was 21 hastas which is equal to about 30 feet, and the devamāna and daityamāna seem to be more for rhetorics rather than actual use. The earth must be pleasing to see and as soft as that required for seed-laying and should be a hand high and levelled. It should be worshipped and Hari should be placed there and a bījapūraka be placed in the center of the arena. After worshiping 'Govinda' the king should see the wrestling.
- CUET (UG) - 2025
- Knowledge Tradition - Practices India
- Reading Comprehension
- In the counselling process, the professional counsellor may use different techniques. In directive or counsellor-centred counselling, the counsellor plays a major role and does all that is possible to get the counsellee to make decisions in keeping with the diagnosis of the problem. In non-directive or permissive or client-centred counselling, the counsellor’s role is comparatively passive. The counsellee takes an active part in the process of therapy. The person seeking help is encouraged to gain insight into the problem with the help of the counsellor. The counsellee takes the final decisions. Thus, this counselling process turns out to be a growth experience for the person. In eclectic counselling, counsellors who advocate using this type of counselling are of the view that directed or non-directed counselling are two ends of continuum. And counsellors should incorporate suitable techniques from both the types of counselling mentioned above as and when required, depending on the situation, the problem and the temperament of the client.
- CUET (UG) - 2025
- Home Science
- Reading Comprehension
The prisoners in the concentration camps in World War-II had lost faith in the future. Being in the camp, I felt disgusted with the state of affairs and I forced my thoughts to turn to another subject. ”Suddenly, I saw myself standing on the platform of a well-lit, warm and pleasant lecture room. In front of me, the attentive audience were seated in comfortable upholstered seats. I saw myself giving a lecture on hope, optimism, and resilience under difficult circumstances.” Suddenly, all that oppressed me stopped giving me pain and distress. This practice was so impactful that I could succeed in rising above the situation and the sufferings of the moment.”
- CUET (UG) - 2025
- Psychology
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Questions Asked in XAT exam
Match the following renowned Indian personalities with their respective awards.
Names Award 1. Shri Ratan Naval Tata A. Dadasaheb Phalke Award 2. Manmohan Singh B. Grammy Awards 3. Zakir Hussain C. Carnegie Medal of Philanthropy 4. Shyam Benegal D. World Statesman Award - XAT - 2025
- Famous personalities and their contributions
Match the following authors with their respective works.
Authors Books 1. Andy Weir A. Dune 2. Cixin Liu B. The Time Machine 3. Stephen Hawking C. The Brief History of Time 4. HG Wells D. The Martian 5. Frank Herbert E. The Three Body Problem - XAT - 2025
- Books and Authors
Match the following airlines with the countries where they are headquartered.
Airlines Countries 1. AirAsia A. Singapore 2. AZAL B. South Korea 3. Jeju Air C. Azerbaijan 4. Indigo D. India 5. Tigerair E. Malaysia - XAT - 2025
- Business and Economy
The diagram below represents a road network connecting five towns, namely Meeren, Lannisport, Winterfell, Oldtown, and Gulltown. The maximum speed limits along any stretch of road are as shown in the diagram. The straight road that connects Meeren to Gulltown passes through Oldtown. Another straight road, running west to east, connecting Meeren to Winterfell, passes through Lannisport. Further, two straight roads, one from Lannisport to Oldtown and another from Winterfell to Gulltown, are perpendicular to the road joining Meeren to Winterfell, and run from south to north.
Consider a car always travelling at the maximum permissible speed, and always taking the shortest route. It takes 1 hour to reach Oldtown from Meeren, 2 hours to reach Gulltown from Oldtown, and 45 minutes to reach Winterfell from Gulltown. (For this problem, always consider the shortest route in terms of distance.)
- XAT - 2025
- Logical and Analytical Reasoning Skills
The plots below depict and compare the average monthly incomes (in Rs. ’000) of males and females in ten cities of India in the years 2005 and 2015. The ten cities, marked A-J in the records, are of different population sizes. For a fair comparison, to adjust for inflation, incomes for both the periods are scaled to 2025 prices. Each red dot represents the average monthly income of females in a particular city in a particular year, while each blue dot represents the average monthly income of males in a particular city in a particular year. The gender gap for a city, for a particular year, is defined as the absolute value of the average monthly income of males, minus the average monthly income of females, in that year.
- XAT - 2025
- Data Interpretation