Special Economic Zones (India)

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

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

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 /