Indian Polity · Indian Constitution
What is the primary financial implication of granting 'Special Category Status' to a state by the Central Government?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A major portion of central assistance is provided as a grant-in-aid rather than a loan✓
- 2The state is completely exempted from paying central excise duties
- 3The High Court of that state receives special administrative powers
- 4The state is allowed to levy external import duties independently
Correct answer
A major portion of central assistance is provided as a grant-in-aid rather than a loan
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