Kandla is well known for:

The correct answer is C) Export processing zone. Kandla, on the Gulf of Kutch in Gujarat, is home to the Kandla Free Trade Zone, set up in 1965 as India's first Export Processing Zone. It is the reason the question links Kandla with export-oriented manufacturing and port-led trade.

• A (Ship breaking): Wrong. Ship breaking is concentrated at Alang in Bhavnagar district, Gujarat, not Kandla.
• B (Cutting and polishing of diamonds): Wrong. This is Surat's specialty, which handles the bulk of India's diamond processing.
• D (Traditional art and craft): Wrong. Kutch's crafts such as bandhani, embroidery and block printing are associated with places like Bhuj and Ajrakh villages, not with Kandla as a zone.

The core concept is the EPZ model: a duty-free, bonded enclave that offers infrastructure and fiscal incentives to export units. For Mains, it fits into discussions on port-led development, SEZ policy and the gap between EPZs and the later SEZ Act, 2005. Note that the port is now called Deendayal Port (renamed in 2020), though the zone is still popularly called Kandla.

Trap: Aspirants often pick Alang for Kandla because both are major Gujarat ports tied to industry. Remember Alang is for ship breaking, and Kandla is for the EPZ and port trade.