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Introduction

Special Economic Zones (SEZ's) have become an economic reality in the modern world. SEZ's are being looked upon as engines of economic growth with world class infrastructure facilities that attract FDI and create large scale employment.
In India, the concept of SEZ's was first adopted in the year 2000 as part of the Foreign Trade Policy. Since then the Union Government of India after prolonged deliberations notified the SEZ Rules in February 2006 operationalising the SEZ Act 2005.

What are SEZ's?

SEZ's are specially demarcated zones where units operate under a set of rules and regulations different from those applicable to other units in the country. SEZ's provide immense benefits by way of government policies and physical infrastructure that would enable enterprises of any sector located within to have a commensurate competitive advantage. The emphasis is on enhancing exports and creating an environment for attracting FDI by offering tax soaps. These SEZ's attract huge investment and generate large scale employment. At present, there are 15 SEZ's up and running in India. These include eight old export processing zones (EPZ's) that have been given the status of SEZ's and seven new SEZ's that have recently become operational.

Benefits Offered Under SEZ's

There have been a host of fiscal incentives offered under the SEZ Act 2005. These benefits include: -