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Culture Documents
• INTRODUCTION
• Special economic zones (SEZs) in India are areas that offer incentives to
resident businesses. SEZs typically offer competitive infrastructure,
duty free exports, tax incentives, and other measures designed to make
it easier to conduct business. Accordingly, SEZs in India are a popular
investment destination for many multinationals, particularly exporters.
• SEZ’S are protected as duty free areas for the purpose of trade,
operations, duty and tariffs. SEZ units are self contained and integrated
having their own infrastructure and support services.
• Sez’s are expected to be engines for economic growth.
• Government of india have notified Special Economic Zone (SEZs) ACT
2005 and notified (SEZs) rules 2006 with a view to augmenting
infrastructure facilities for export
In other words SEZs are specifically delineated enclaves treated as
foreign territory for the purpose of industrial, service and trade
operations, with relaxation in customs duties and a more liberal
regime in respect of other levies, foreign investments and other
transactions.
These regions exists in many countries of the world and China
perhaps the oldest to give reality to this concept. Although they
exist in several countries, their attributes vary. Typically they are
regions designated for economic development oriented toward
inward FDI and exports fostered by special policy incentives.
The SEZs in India are the outcome of the present governments
industrial policy which emphasizes deregulation of Indian industry
and to allow the industries to flexibly respond to the market forces.
All undertakings other than the small scale industrial undertakings
engaged in the manufacture of items reserved for manufacture in
the small scale sector are required to obtain an industrial license
and undertake an export obligation of 50% of the annual production.
This condition of licensing is, however, not applicable to those
undertakings operating under 100% Export Oriented Undertakings
Scheme, the Export Processing Zone (EPZ) or the Special Economic
Zone Schemes (SEZs)
SEZs INDIA
1. SEZs were introduced to India in 2000, following the already successful SEZ model used in China.
2. Prior to their introduction, India relied on export processing zones (EPZs) which failed to make
an impact on foreign investors.
3. By 2005, all EPZs had been converted to SEZs. As of 2017, there are 221 SEZs in operation, with
a further 194 approved for 2018.
4. For developers to establish an SEZ in India, applications can be made to the Indian Board of
Approval. Companies, partner firms, and individuals may also apply by completing Form-A which
is available on the Department of Commerce's website.
5. There are four types of SEZs in India, which are categorised according to size:
● Multi-sector (1,000+ hectares)
● Sector-specific (100+ hectares)
● Free Trade & Warehousing Zone (FTWZ) (40+ hectares)
● Tech, handicraft, non-conventional energy, gems & jewellery (10+ hectares).
OBJECTIVES
• 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
• ROLE
• To provide internationally competitive
environment
• To encourage FDI and enhance GDP
• To increase share in global exports
SEZs exports are accounting for 26% of India ‘s total export in 2011
ADVANTAGES
• Growth and development
• Attracts foreign developments
• Exposure to technology and global market
• Increasing GDP and economic model
• Employment opportunities are created
• DISADVANTAGES
• Land aquisition at low price
• Farmers loose their livelihood
• Tax holidays affects GDP
• THREATS
• The pattern of buying and selling may not continue.with relocations
of industries in other third world countries , new competitors will
emerge
• Opposing interests
• Prospect of even more restrictive labour laws being introduced
• Increasing rejection rate for proposals to establish SEZs
IMPACT OF SEZz
• Affluent of the industry will deteriorate physical
condition of soil
• The chemical affluents from the industries will also
effect the bio resources
• The sub surfaces and the under ground water quality
will be impaired , because of heavy metals etc,
through the contaminated water from the surface
• The fertile land will become unproductive for the
agriculture
• The environment will be affected by such pollution
• The land value will be deceased
• The socio economic conditions of the people in the
areas will be affected
The major incentives and facilities available to
SEZ developers include:-
• CONCLUSION
SEZ’s policy has no doubt given a boost to the indian economy but
comparison of implementation with other countries brings out lacunas in
india’s SEZ policy