Special Economic Zones

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Special Economic Zones (SEZs) in India are specific localities which offer tax as well as various other incentives to their resident businesses. Up till 2000, India did not have SEZs, and instead had a number of Export Processing Zones (EPZs), which, although comparable in framework to the modern SEZ, fell short in drawing firms to India. The federal government, appropriately, introduced the SEZ in April 2000. Structured closely on the currently effective model of China, they are created to assist and stimulate both foreign and domestic financial investment, boost India’s exports, as well as produce new employment opportunities. India’s Special Economic Zones Act, 2005 further modified the nation’s international financial investment policy and converted its EPZs to SEZs, with remarkable zones consisting of Santa Cruz (Maharashtra state), Cochin (Kerala state), Kandla and Surat (Gujarat state), Chennai (Tamil Nadu state), Visakhapatnam (Andhra Pradesh state), Falta (West Bengal state), Noida (Uttar Pradesh state), and Indore (Madhya Pradesh state). Since the Act’s promulgation, the Indian central government has also approved propositions for extra, much smaller SEZs, which must be suggested by developers to the Indian Board of Approval. The SEZ Rules, 2006 put down the full procedure to create an SEZ or establish a unit in an SEZ. Although India’s SEZs are relatively brand-new, they have ended up being essential sourcing and also manufacturing destinations for foreign investors.

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