Special economic zones (SEZs) are government-designated zones in India that offer incentives to businesses to encourage them to settle there. SEZs typically offer competitive infrastructure, duty-free exports, tax incentives, and other measures that make doing business easier. SEZs in India are therefore popular investment destinations for multinationals, especially exporters. A primary objective was to attract foreign investment and to provide an environment conducive to exports.
What is SEZ?
A special economic zone (SEZ) is a territory within a country that is typically duty-free (Fiscal Concession) and has different business and commercial laws primarily to attract investment and jobs. Additionally, SEZs are created to better administrate these areas, which makes doing business easier.
SEZs in India
In 1965, the first EPZ (Export Processing Zone) in Asia was established in Kandla, Gujarat.
Although these EPZs had a similar structure to SEZs, the government began establishing SEZs in 2000 under the Foreign Trade Policy to address the infrastructure and bureaucracy challenges that were seen as limiting EPZs’ success.
At present, 379 SEZs are notified, of which 265 are operational. About 64% of the SEZs are located in five states: Tamil Nadu, Telangana, Karnataka, Andhra Pradesh, and Maharashtra.
Objectives of the SEZ Act
Boost the export of goods and services,
create more economic activity.
To increase domestic and foreign investment.
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Kishan Thakkar is working as a writer for the real estate and architecture industry. His experience includes working for various reputed firms. He is currently pursuing MBA in Business Management and handling operations for The Real Talks platform. He has a penchant for research, analysis, and understanding various fields. Discipline is the key to balance his diversified interest and work routine.