UPSC Prelims Practice Questions — Commerce dept. pushes move in face of global uncertainties, U.S. tariffs

Q1. Under the Special Economic Zones Act, 2005, the Board of Approval — the apex body for considering proposals relating to the establishment and operation of SEZs — is chaired by which of the following?

  • A. Cabinet Secretary
  • B. Secretary, Department of Commerce
  • C. Secretary, Department of Revenue
  • D. Secretary, Department for Promotion of Industry and Internal Trade

Q2. With reference to the reforms relating to Special Economic Zones (SEZs) announced in the Union Budget 2026-27, consider the following statements: 1. Eligible SEZ manufacturing units have been granted a special one-time permission to sell goods in the Domestic Tariff Area at concessional duty. 2. The concept of 'reverse job-work' has been introduced, permitting SEZ units to undertake part of the manufacturing process for Domestic Tariff Area units. 3. The SEZ Rules have been amended to include the value of goods received free of cost in the computation of Net Foreign Exchange. 4. The requirement for SEZ units to remain Net Foreign Exchange-positive over a five-year period has been done away with. Which of the statements given above is/are correct?

  1. Eligible SEZ manufacturing units have been granted a special one-time permission to sell goods in the Domestic Tariff Area at concessional duty.
  2. The concept of 'reverse job-work' has been introduced, permitting SEZ units to undertake part of the manufacturing process for Domestic Tariff Area units.
  3. The SEZ Rules have been amended to include the value of goods received free of cost in the computation of Net Foreign Exchange.
  4. The requirement for SEZ units to remain Net Foreign Exchange-positive over a five-year period has been done away with.
  • A. 1 and 2 only
  • B. 1, 2 and 3 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q3. Which of the following is the apex statutory body for considering proposals for the establishment of Special Economic Zones in India and granting approvals under the Special Economic Zones Act, 2005?

  • A. Approval Committee of the SEZ
  • B. Empowered Group of Secretaries on SEZ
  • C. Board of Approval
  • D. Office of the Development Commissioner

Q4. As highlighted in the Union Budget 2026-27 documents on Special Economic Zones, the number of notified SEZs in India is closest to which of the following?

  • A. 168
  • B. 268
  • C. 368
  • D. 568

Q5. With reference to the SEZ reform package being pushed by the Department of Commerce amid U.S. tariff escalation and global trade uncertainties, consider the following measures: 1. Permitting eligible SEZ manufacturing units to sell in the Domestic Tariff Area on a duty-foregone/concessional-duty basis. 2. Introduction of 'reverse job-work' allowing SEZ units to undertake part of the manufacturing process for DTA units. 3. Permitting rupee-denominated payments by domestic units for services rendered by SEZ units. 4. Repeal of the Special Economic Zones Act, 2005 and its replacement by the Development of Enterprise and Service Hubs (DESH) Act in the Budget 2026-27. Which of the above is/are NOT correct?

  1. Permitting eligible SEZ manufacturing units to sell in the Domestic Tariff Area on a duty-foregone/concessional-duty basis.
  2. Introduction of 'reverse job-work' allowing SEZ units to undertake part of the manufacturing process for DTA units.
  3. Permitting rupee-denominated payments by domestic units for services rendered by SEZ units.
  4. Repeal of the Special Economic Zones Act, 2005 and its replacement by the Development of Enterprise and Service Hubs (DESH) Act in the Budget 2026-27.
  • A. 1 and 3 only
  • B. 4 only
  • C. 3 and 4 only
  • D. 2 and 4 only
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