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manufacturing. Promotion of investment from domestic and foreign sources. Promotion of exports of goods &Services.What is SEZ? contained geographic regions within countries encourage industry. and services for export more liberal laws and economic policies Especially meant for trade and warehousing Objectives For Exclusive growth To increase share in world trade Generation of additional economic activity. Development of infrastructure facilities EPZ to SEZ Inefficient EPZ absence of single window facility within zone Immature market to embrace FIIs and attract FDIs limited power of zonal authorities EPZ converted to SEZ in 2000 . Creation of employment opportunities.

‡ External Commercial Borrowing by SEZ units up to US $ 12500 billion in a year without any maturity restriction through recognized banking channels. operation and maintenance of SEZ units ‡ 100% Income Tax exemption on export income for SEZ units for first 5 years. 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.SEZ ‡ SEZ's should have an area preferably of 1000 hectares. Service Tax. ‡ Exemption from Central Sales Tax. ‡ Duty free import/domestic procurement of goods for development. dividend distribution tax . State sales tax and other levies. ‡ Duty free goods to be utilize within the approval period of five years.

4 833. Gujarat EXPORTS IN Rs (Crores) 10385. Gujarat Reliance Jamnagar Infrastructure Ltd. Andhra Pradesh Mundra Port and Special Economic Zone. annual report 2009-2010 .44 8 0 5219. Tamil Nadu Apache SEZ (Adidas Group) in Andhra Pradesh Wipro Limited.009 - 9882. 586 443 3 1.56 9383 13 2.3 EMPLOYMENT INVESTMENT FDI in Rs (Crores) Rs (Crores) 2225.28 2385 32082 Ministry of commerce.5 18 .63 1 2..Success Stories SEZ Nokia Special Economic Zone in Tamil Nadu Mahindra City SEZ. 01 - 68.03 5342 22 .15 16.51 14859 1524.

Sectors Agro Airport based multiproduct Auto and related Beach & mineral/ metals Bio-tech Building prod. 2005) 0 0 1 2 0 2 2 1 7 2 2 0 3 2 75 0 0 16 0 2 0 0 5 2 1 5 0 0 0 130 Aviation/Aerospace/ Animation & Gaming/ Copper 3 ./mal. Electronic prod/ind Engineering Footwear/Leather Food Processing FTWZ Gems and Jewellery Handicrafts & Carpets IT/ITES/Electronic Hardware/Semiconductor Metal/Stain./Pvt./ transport equt. Pharma/chemicals Port-based multi-product Power/alternate energy/ solar Textiles/Apparel/Wool Writing and printing paper mills Strategic Manufacturing Granite processing Industries and other allied machinery/ manufacturing GRAND TOTAL Formal approvals 6 3 3 2 33 1 3 21 7 5 11 13 4 353 9 1 23 16 5 0 4 23 8 3 19 2 0 1 582 Notified SEZs 4 0 1 2 2 18 1 3 16 5 4 6 6 2 233 5 0 15 8 4 0 2 20 2 1 12 1 0 1 374 Operational SEZs (Central Govt. Steel/Alum/Foundry Metallurgical Engineering Multi-Product Multi-Services/Services Non-Conventional Energy Plastic processing Petrochemicals & petro. SEZs + notified SEZs under the Act. + State Govt.

Department of commerce annual report 2009-2010 .

in/scripts/PublicationsView.aspx?id=12846 .rbi.FDIs in India 200000 FDIs in Rs Crores 180000 160000 140000 120000 100000 80000 60000 40000 29235 39674 24367 18406 316 965 1838 4126 7172 13220 10358 10015 9338 19860 27188 103367 140180 176304 161536 20000 0 Source: http://www.org.

14 237.02 385.nsez.41 Total FDIs = 895.38 104.65 101. SEZs 700 635.29 135 117.8 http://www.31 429.48 67.gov.46 100 0 93.72 87.in/nsezwebsite/Resources/Employemnt/inv-in-Emp-in-Govt-State-private-established-prior-toSEZs.FDIs in Central Govt.93 8.18 FDIs 540 600 500 434.49 371.58 Govt Private 400 300 238.38 76.14 116.pdf .8 200 137.53 57.36 154.

1 845125.5 840755.05 10.62 1.9 571779.22 1. Crore) Growth Total Exports Rate of India (In (over Rs.43 2003-2004 2004-2005 2005-2006 2006-20007 2007-2008 2008-2009 2009-2010 13.69 3.39 39% 32% 25% 52% 93% 50% 121.12 Source: sezindia.314 22 840 34.70 4.854 18.47 0.88 5.53 0. Crores) previous year ) % of Total exports % of India s GDP 0.in and RBI annual report .8 375339.40% 293366.43 0.711.615 66.5 456417.2 4.0 6.638 99.689 2.86 26.Exports Year SEZ exports Value (Rs.3 655863.16 11.nic.20.

86.612 persons 63.20.in 3.159 persons 4.395 persons 6.080 persons 83.349 persons 50.nic. 824 persons Total . 2010) Incremental Employment Total Employment SEZs Notified under the Act State/Pvt.349 persons 3.Employment EMPLOYMENT (As on 30th September. SEZs set up before 2006 Central Government SEZs Sezindia.52.05.52.120 persons 2.

1.41 cr Total . Rs. 7.20 cr.742.337.71 cr.742.581.148.91 cr Rs.99 cr Rs. Rs.90 cr. 2010) SEZs Notified under the Act State/Pvt. Total Investment Rs.76. 7.112.Investments INVESTMENT (As on 30th September.1.in Incremental investment Rs.61.1. Rs.61.1. 4. 5.788.067.nic.51 cr Rs.99 cr. SEZs set up before 2006 Central Government SEZs Sezindia.72.

SEZ demerits.233 crore in 2009-10 ‡ Loss of fertile lands ‡ SEZz becoming centers of Real Estate ‡ Not encouraging for SMEs due to location (city outskirts) and size (10 hectares to 1.! ‡ Revenue foregone on tax incentives to SEZ units in the current fiscal is Rs 5.126 crore. up from Rs 4.000 hectares) requirements ‡ land acquisition and rehabilitation of the displaced persons ..

000 hectares) requirements ‡ Labour laws not applicable in SEZs ‡ Uneven Growth ..SEZ demerits.! ‡ Loss of fertile lands ‡ SEZz becoming centers of Real Estate ‡ Not encouraging for SMEs due to location (city outskirts) and size (10 hectares to 1.

SEZ demerits .

‡ The SEZ policy will exacerbate regional imbalance . this may encourage firms to move an existing activity from its current location to a SEZ. since most of them are less than one sq. ‡ The SEZ policy is not likely to create new infrastructure beyond buildings. . ‡ In some cases. km. and are located in and around industrialised areas. since the overwhelming focus is on IT/ITES. since they are being disproportionately located in districts that already have high levels of industrialisation.Are SEZs Meeting their Objectives? ‡ The SEZ policy is not creating a new manufacturing base.

Recommendations .

Future of SEZs in India .

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