Special Economic Zone

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An effective utilization of human resources can boost the development of India. Hence, both Central Government and State Governments have prepared the number of plans for the economic development. Among the many plans, one of the plans is establishment of Special Economic Zone (SEZ). The very purpose of establishing SEZ is providing all infrastructural facilities, marketing assistance, financial assistance and incentives in all aspects. If all the facilities are provided, certainly, many entrepreneurs may come forward to establish their units in SEZ voluntarily; mainly labour intensive units are established in SEZ for the benefit of the local area people. Some of the existing Export Processing Zones are converted into Special Economic Zones.…show more content…
Special Economic Zones (SEZs) have been recognized as an important mechanism for trade and investment promotion, creation of infrastructure, employment generation, promotion of regional development, increase in foreign exchange earnings, improving export competitiveness and transfer of skills and technology. The SEZs have been in existence for decades, but have attracted renewed attention world-wide in recent years due to globalization of trade and financial markets. Now, it is a well recognized fact that the SEZs are instrumental in developing local and regional infrastructure facilities, which in turn are necessary for overall economic development of a…show more content…
As per the Ministry of Commerce and Industry, “Special Economic Zone (SEZ) is a specifically delineated duty free enclave and is a deemed foreign territory for the purpose of trade operations, duties and tariffs.” According to the Exim (Export-Import) Policy (2004-09), SEZ is a geographically distributed area or zone where the economic laws are more liberal as compared to other parts of the country. They are self-contained and integrated, having their own infrastructure and support services. Goods and services flows from DTA (Domestic Tariff Area) to SEZ are to be treated as exports and goods coming from SEZ into DTA are to be treated as imports. 1.1 EVOLUTION OF SEZ IN INDIA The journey from EPZs to SEZs in India has witnessed several developments and failures in terms of conception and expansion of EPZs across India, conversion of EPZs into SEZs with various inefficiencies, its reintroduction under the new SEZ Act, growth of SEZs establishment in India and further loosening its significance due to imposition of MAT and DDT. A great emphasis on revisiting the SEZs model and making it a catalyst for India’s economic growth in coming times has been formulated. Fig1.1 Chronology of SEZ in India 1.2 TYPES OF SPECIAL ECONOMIC

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