Which one among the following is not true for Special Economic Zones?

Special Economic Zones (SEZs) in India are governed by the SEZ Act, 2005, and the SEZ Rules, 2006. According to official guidelines, the salient features of the SEZ scheme include the fact that no license is required for imports [2]. Both manufacturing and service activities are explicitly allowed within these zones to promote exports and economic activity [2]. Furthermore, to facilitate ease of doing business, there is no routine examination of export or import cargo by customs authorities, except in cases of specific intelligence [3]. However, the statement that there is 'no permission for subcontracting' is incorrect. The SEZ policy specifically provides 'full freedom for subcontracting' to units operating within the zone to enhance operational flexibility and export competitiveness [2]. Therefore, option 3 is the only false statement among the choices provided.

Sources

1. [1] https://www.nitiforstates.gov.in/public-assets/Policy/policy_files/PNC1565C000399.pdf
2. [2] https://sezindia.gov.in/FAQ
3. [3] https://www.nsez.gov.in/Resources/SEZ%20FAQs.pdf