Special Economic Zones in India  

Last Updated at: April 07, 2020
286
Special Economic Zones

A Special Economic Zone or SEZ is an area where the trade and business laws are non-identical to and more liberal than similar laws prevailing in other parts of a country. As a first initiative towards setting up SEZs in India, the Special Economic Zone policy came into existence from 1st April 2000. The primary objective of this policy was to increase foreign investment in India and to facilitate a globally competitive, yet conducive environment for exports. Later on, legislation was duly passed which allowed SEZs to provide tax breaks to the foreign investors. However, over the years, it was felt that these policies did not quite meet their objectives, owing to certain pitfalls and important omissions.

The Special Economic Zone Act of 2005 looked to remove these drawbacks and wanted to provide a stable and long-term policy framework to businesses, with minimum regulations. This Act covers all regulatory and legal aspects related to the development of SEZs and also regarding units operating under SEZs.

As mentioned in the SEZ Act of 2005, a Special Economic Zone (SEZ) in India is a specially delimited and duty-free enclave. An SEZ will be deemed as a foreign territory for matters related to trade tariffs, duties, and operations. The economic laws in this geographical area are different from the prevailing laws in other parts of India.

Objectives of the SEZ Act, 2005

The primary objectives of the SEZ Act are as follows-

It helps to

  • Generate additional economic activity
  • Promote exports of services and goods
  • Promote investment from foreign and domestic sources
  • Create employment opportunities
  • Develop infrastructure facilities

Get free legal advice now 

What are the Special Economic Zones in India

As of20th February 2020, as many as 354 SEZs have been notified in different parts of India under the Special Economic Zone (SEZ) Act of 2005. The state-wise distribution of notified SEZs is given below-

 

Sl no

State/Union Territory Notified SEZs
   

1 Andhra Pradesh 27
2 Chandigarh 2
3 Chhattisgarh 1
4 Goa 3
5 Gujarat 22
6 Haryana 20
7 Jharkhand 2
8 Karnataka 52
9 Kerala 25
10 Madhya Pradesh 7
11 Maharashtra 44
12 Manipur 1
13 Nagaland 2
14 Odisha 5
15 Punjab 3
16 Rajasthan 4
17 Tamil Nadu 52
18 Telangana 56
19 Tripura 1
19 Uttar Pradesh 20
20 West Bengal 5
     
  Total 354

 

Any state government, its agencies, foreign agencies, and any public/private/joint sector organization can come up to set up SEZs in India.

0

Special Economic Zones in India  

286

A Special Economic Zone or SEZ is an area where the trade and business laws are non-identical to and more liberal than similar laws prevailing in other parts of a country. As a first initiative towards setting up SEZs in India, the Special Economic Zone policy came into existence from 1st April 2000. The primary objective of this policy was to increase foreign investment in India and to facilitate a globally competitive, yet conducive environment for exports. Later on, legislation was duly passed which allowed SEZs to provide tax breaks to the foreign investors. However, over the years, it was felt that these policies did not quite meet their objectives, owing to certain pitfalls and important omissions.

The Special Economic Zone Act of 2005 looked to remove these drawbacks and wanted to provide a stable and long-term policy framework to businesses, with minimum regulations. This Act covers all regulatory and legal aspects related to the development of SEZs and also regarding units operating under SEZs.

As mentioned in the SEZ Act of 2005, a Special Economic Zone (SEZ) in India is a specially delimited and duty-free enclave. An SEZ will be deemed as a foreign territory for matters related to trade tariffs, duties, and operations. The economic laws in this geographical area are different from the prevailing laws in other parts of India.

Objectives of the SEZ Act, 2005

The primary objectives of the SEZ Act are as follows-

It helps to

  • Generate additional economic activity
  • Promote exports of services and goods
  • Promote investment from foreign and domestic sources
  • Create employment opportunities
  • Develop infrastructure facilities

Get free legal advice now 

What are the Special Economic Zones in India

As of20th February 2020, as many as 354 SEZs have been notified in different parts of India under the Special Economic Zone (SEZ) Act of 2005. The state-wise distribution of notified SEZs is given below-

 

Sl no

State/Union Territory Notified SEZs
   

1 Andhra Pradesh 27
2 Chandigarh 2
3 Chhattisgarh 1
4 Goa 3
5 Gujarat 22
6 Haryana 20
7 Jharkhand 2
8 Karnataka 52
9 Kerala 25
10 Madhya Pradesh 7
11 Maharashtra 44
12 Manipur 1
13 Nagaland 2
14 Odisha 5
15 Punjab 3
16 Rajasthan 4
17 Tamil Nadu 52
18 Telangana 56
19 Tripura 1
19 Uttar Pradesh 20
20 West Bengal 5
     
  Total 354

 

Any state government, its agencies, foreign agencies, and any public/private/joint sector organization can come up to set up SEZs in India.

0

FAQs

No FAQs found

Add a Question


No Record Found
SHARE
Senior Executive - Content in Vakilsearch | Former TEDxSKCET Licensee | Content Marketing | Psychology | Engineering (IT) | Google Developers Group (GDG) co-organizer | WTM Ambassador