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Browse Articles » Business » Importance of SEZ in India
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Importance of SEZ in India
by Tanya Sharma SEO Executive
Sponsored
SEZ stands for Special Economic Zone which is one of the significant part
of government’s policies in India. A special Economic zone is a
geographical region where tax and tariff policies are more liberal than
regular economic laws followed in rest of the country. SEZ is a trade
capacity development tool, with an objective to promote rapid economic
growth by using tax and business incentives to attract foreign investment
and technology. Today, there are approximately 3,000 SEZs operating in
120 countries, which account for over US$ 600 billion in exports and about 50 million jobs.
The basic idea behind this is to attract investment and foreign exchange, spur employment,
increase the level of income of people and boost development of improved technologies and
infrastructure.
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The SEZ was first pioneered by China in order to drive growth in investment, job
opportunities, technical knowledge and certain tax reforms. It contributed almost 20% to FDI
(Foreign Direct Investment)enabling increased Public-private partnership and ultimately
boosting economic growth. Later, the SEZ model was also successfully implemented in Poland
and Philippines. It has contributed in almost 35 percent of the FDI inflows. It not only provides a platform where it attracts foreign
companies looking for cheaper and efficient setup for their offshore business, but also allows local industries to improve their export
through a proper channel and with the help of new foreign partners at competitive rates.
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sez in india
In order to undertake any kind of massive development program, the government requires funds in huge amount. So it aims at
potential partners for assistance to carry out the programs. For setting up an SEZ in India, the government may tie up with a
private partner interested in investing the area. The deal will prove to be a boon for both parties as the government will get the
capital needed to establish the required infrastructure and also the expertise while on the other hand the private party will have the
right to market and use SEZ’s with relaxed tax laws, thereby increasing its revenue generating capacity and also carrying out the
economic growth of the company in a more efficient way with better tax policies. With relaxed import tariffs, SEZs help import
dependent and export driven industries to flourish by helping them develop manufactured goods at competitive prices.
SEZs also create immense job opportunities. It provides a lot of indirect employment in terms of labor. Then, after that it also
provides employment in relevant industries operating in SEZs in India. It also contributes to improve country's foreign export. The
increased export from the country brings in more revenue for the country, lifting the economic growth and balancing it.
Keystone SEZ is one of the upcoming special economic zones in India having the best facilities to support research and innovation
driven companies. It is a unique research cluster which allows a company to undertake Research, Development and Manufacturing
at a single location for Indian and International market.
factory location
plant location
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About Tanya Sharma
SEO Executive
39 connections, 0 recommendations, 98 honor points.
Joined APSense since, September 17th, 2013, From Delhi, India.
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