A Special Economic Zone (SEZ) is a geographical region that has different economic laws than the country's typical laws, with the goal of increasing foreign investment. SEZs exempt companies from customs duties and streamline regulations. They have been established in several countries including China, India, and Poland. The Special Economic Zones Act of 2005 established SEZs in India and allows private/public sectors and state governments to set them up. Currently, there are eight functional SEZs located in major cities across India, with 18 more approved for development. State governments play an important role by providing basic infrastructure and approving proposed SEZ locations.

1. DEEPAKKUMARGACHHAYAT
STUDENT(ICSI)
MBA (ICFAI

2. Special Economic Zone (SEZ) is a specifically delineated
duty-free enclave and shall be deemed to be foreign
territory for the purposes of trade operations and
duties and tariffs. In order words, SEZ is a geographical
region that has economic laws different from a
country's typical economic laws. Usually the goal is to
increase foreign investments. SEZs have been
established in several countries, including China, India,
Jordan,Poland,Kazakhstan.
What is SEZ ?

3. 1. (1) This Act may be called the Special Economic Zones
Act, 2005. (2) It extends to the whole of India. (3) It shall
come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint, and
different dates may be appointed for different provisions
of this Act and any reference in any such provision to the
commencement of this Act shall be construed as a
reference to the coming into force of that provision.

4. SEZ4
History of SEZ
First known
SEZ-
Puerto
Rico-1947
Ireland and
Taiwan
followed-
1960
China made
the SEZ’s a
global
concept-
largest
number of
SEZ’s –
Shenzen
1980
Revolution
came in
2000-
inorporatio
n of SEZ in
EXIM
policy
SEZ act
introduces
in India-
2005

5. Where are SEZs located in India?
At present there are eight functional SEZs located at
Santa Cruz (Maharashtra)
Cochin (Kerala)
Kandla and Surat
(Gujarat)
Chennai (Tamil Nadu)
Visakhapatnam (Andhra
Pradesh),
Falta (West Bengal
Noida (Uttar Pradesh)

6. In addition 18 approvals have been given for
setting up of SEZs
1 Positra (Gujarat)
2 Navi Mumbai and Kopata (Maharashtra),
3 Nanguneri (Tamil Nadu),
4 Kulpi and Salt Lake (West Bengal)
5 Paradeep and Gopalpur (Orissa)
6 Bhadohi, Kanpur, Moradabad and Greater Noida (UP)
7 Vishakhapatnam and Kakinada (Andhra Pradesh)
8 Vallarpadam/Puthuvypeen (Kerala)
9 Hassan (Karnataka)
10 Jaipur and Jodhpur ( Rajasthan)

7. 1. Any private/public/joint sector or state government or its
agencies can set up an SEZ.
ANS

8. Can foreign companies set up SEZs ?
Yes, a foreign agency
can set up SEZs in
India.

9. What is the role of state governments in
establishing SEZs?
State governments will have a very important
role to play in the establishment of SEZs.
Representative of the state government, who is
a member of the inter-ministerial committee on
private SEZ, is consulted while considering the
proposal. Before recommending any proposals
to the ministry of commerce and industry
(department of commerce), the states must
satisfy themselves that they are in a position to
supply basic inputs like water, electricity, etc.