Explanation:

Statement 1 is correct. SEZ refers to a specially demarcated territory usually known as 'deemed foreign
territory' with tax holidays, exemption from duties for export and import, world level economic and
social infrastructure for production and augmentation of export activities within the territory along with
facilities like abundant and relatively cheap labour, strategic location and market access etc.
o Statement 2 is correct. The major objectives of setting up a SEZ are to attract Foreign Direct Investment
(FDI), earn foreign exchange and contribute to exchange rate stability, boost the export sector especially
non traditional exports, to create employment opportunities, introduce new technology, develop
backward regions etc. by stimulating sectors as electronics, information technology, R & D, tourism,
infrastructure and human resource development that are regarded as strategically important to the
economy.