Name – Himanshu Bhardwaj

Roll No – 18BBA029

Answer 1 –

An special economic zone (SEZ) is a territory in a country that is dependent upon unexpected
financial guidelines in comparison to different districts inside a similar country. FDI alludes to any
speculation made by a firm or individual in one country into business intrigues situated in another
country. At the point when a country or individual behaviors business in a SEZ, there are regularly
extra financial benefits for them, including charge motivations and the chance to pay lower duties.
SEZs are generally made to work with fast financial development in certain geographic districts. This
financial development is cultivated by utilizing charge impetuses as a method of drawing in
unfamiliar dollars and innovative headway. SEZs may likewise build trade levels for the carrying out
country and different nations that supply it with moderate items. The first SEZs appeared in the late
1950s in industrialized countries. They were designed to attract foreign investment from
multinational corporations.

Advantages:
1.Permitted to convey forward misfortunes.

2.No permit needed for import made under SEZ units.

3.Obligation free import or homegrown acquirement of merchandise for setting up of the SEZ units.

4.Merchandise imported/obtained locally are without obligation and could be used preposterous
time of 5 years.

5.Exception from customs obligation on import of capital products, crude materials, consumables,
saves, and so on

6.Exception from Central Excise obligation on the obtainment of capital merchandise, crude
materials, and consumable extras, and so on from the homegrown market.

How it works:
The Process of Special economic zone (SEZ) is same as its definition and advantages. How it works is
explained in its definition and advantages as in “No permit is needed for import made under SEZ
units.