Brief Explanation about Special Economic Zones in India and its benefits to the Indian Economy and how these SEZ's are helping the economy to grow and create employment in the Indian undeveloped Sectors.

1. Special Economic
Zones
By
Chetan Sarwade
214

2. Contents
 Special Economic Zones (SEZ)
 History of SEZ
 Benefits of SEZ
 Facilities for SEZ
 Types of SEZ
 Distribution of SEZ’s
 Export Performances
 Positive Impact of SEZ

3.  A Special Economic zone (SEZ) is a geographical region
that is designed to export goods and provide
employment. SEZs are exempt from federal laws
regarding taxes, quotas, FDI-bans, labor laws and other
restrictive laws in order to make the goods manufactured
in the SEZ at a globally competitive price.
 It is a specifically delineated duty-free enclave and shall
deemed to be a foreign territory for the purposes of trade
operations and duties and tariffs.
 To provide an internationally competitive and hassle-
free environment for exports

4. History of SEZ in India
 India was one of the first in Asia to recognize the
effectiveness of the Export Processing Zone (EPZ) model
in promoting exports, with Asia’s first EPZ set up in
Kandla in 1965.
 From 1965 onwards, India experimented with the concept
of such units in the form of Export Processing Zones
(EPZ).
 By 1978 India had another four free trade zones at
Mumbai , Chennai , Noida and Falta.
 But a revolution came in 2000, when Murasoli Maran,
then Commerce Minister, made a tour to the southern
provinces of China. After returning from the visit, he
incorporated the SEZs into the EXIM Policy of India’s
Five year Plan later, SEZ Act (2005) was also introduced
and in 2006 SEZ rules were formulated

5. Categories that SEZ includes
Free trade zones (FTZ)
Free Zones (FZ)
Industrial parks or Industrial estates (IE)
Urban enterprise zones.

6. Facilities offered to SEZ
 Exemption from Central Sales Tax.
 Exemption from Service Tax.
 Exemption from minimum alternate tax under section 115JB of
the Income Tax Act.
 Exemption from State sales tax and other levies as extended by
the respective State Governments.
 Single window clearance for Central and State level approvals.
 Duty free import/domestic procurement of goods for
development, operation and maintenance of SEZ units

7. Benefits
 Promotion of exports of goods and services
 Promotion of investment from domestic and
foreign sources
 Creation of employment
 Development of infrastructure facilities
 Single window clearance for setting up of a SEZ
and an unit in SEZ
 Easy and simplified compliance procedures and
documentations with stress on self certification

8. State-wise Distribution of
approved SEZ
State Total
Approved
Total
Notified
Total
Operational
Maharashtra 78 52 25
Telangana 60 42 24
Karnataka 59 39 25
Tamil Nadu 59 51 36
Andhra
Pradesh
44 30 18
Gujarat 39 28 18

9. Export Performances
Year Value In Crores Growth over
Previous Year
2010-11 3,15,868 43.11%
2011-12 3,64,478 15.39%
2012-13 4,76,159 31%
2013-14 4,94,077 4%
2014-15 5,68,188 15%

10. Positive Impacts
Promote FDI
Boost Economic Growth and Exports
Infrastructure Development
Generate Local Employment Opportunities
Growth opportunities for Tier 2 cities
Ease of procedure to start business
Duty free imports and tax exemptions
SEZ encompasses conglomeration of industries

11. References
 www.sezindia.nic.in/
 https://india.gov.in/official-website-special-economic-
zones-india
 www.cbec.gov.in/htdocs-cbec/customs/cs-sez-botm
 www.dmicdc.com/
 https://www.midcindia.org/