The correct answer is Duty-free import of raw materials. Explanation & Key Takeaways: • SEZ Concept: A Special Economic Zone (SEZ) is a specially demarcated geographical area where business and trade laws are different from the rest of the country. • Primary Goal: The main objective of creating SEZs is to increase exports and attract foreign investment. • Key Benefits: One of the major financial benefits for companies in an SEZ is the ability to import raw materials and capital goods without paying customs duty. • Other Incentives: Additional benefits include 100% income tax exemption on export income for an initial period, world-class infrastructure, and streamlined administrative processes. Related Concepts: • Free electricity and water for life: While utilities may be subsidized or provided reliably, they are not typically offered for free indefinitely. • A government-provided workforce: SEZs facilitate access to a skilled workforce but do not provide it directly free of cost. • Permanent exemption on all taxes: Tax exemptions, like the income tax benefit, are for a specific, limited period, not permanent.