A Special Economic Zone (SEZ) is a geographical region which has economic laws more liberal than a nation’s economic laws.
- The main objectives of the SEZ are generation of additional economic activity.
- Promotion of exports of goods and services,
- Promotion of investment from domestic and foreign sources,
- Creation of employment opportunities
- Development of infrastructure facilities.
The facilities available in SEZs developed by state and central govts. to attract foreign investments are
- Companies are provided with specific incentives and benefits such as income tax exemptions, exemption from service tax and central tax and tax holidays.
- For any foreign investor looking for land to set up a plant, SEZ allots land speedily without any encumbrance, disruption, or litigation.
- Foreign Investors can decide to set-up their production facilities for export to other nations or to sell in regional/domestic markets, because of their preference.
- Duty-free import/procurement of goods for operations and of SEZs units. No License is required for Imports.
- The ease of doing business, along with the availability of dependable and clean water, power, and other resources, together with trained and educated, are available across SEZs
All laws of India are applicable in SEZs unless specifically exempted as per the SEZ Act/ Rules. Each Zone is headed by a Development Commissioner and is administered as per the SEZ Act, 2005 and SEZ Rules, 2006. Units may be set up in the SEZ for manufacturing, trading or for service activity.
