Special Economic Zones (SEZs) are growth engines that can boost manufacturing, augment exports and generate employment. Special Economic Zone (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purpose of trade and operations and duty and tariffs. The goods and services going into Special Economic Zone area from DTA shall be treated as exports and goods coming from Special Economic Zone area into DTA shall be treated as if these are being imported. SEZ units may be set up for manufacture of goods and / or rendering of services.
The main objectives of Special Economic Zone (SEZ) scheme are: Attracting foreign direct investment (FDI), earning foreign exchange, boosting the export especially the nontraditional exports, creating employment opportunities, introducing new technology, developing backward regions, stimulating growth in sectors like: electronics, information technology, R&D, infrastructure and human resources development that are regarded important to the economy and creating backward and forward linkages to increase the output and raise the standard of local enterprise that supply goods and services to the zone and thereby generating additional economic activity.
Government of India enacted The Special Economic Zone Act 2005 and framed SEZ Rules 2006. The Government offers various incentives to units coming up in SEZ.
For further Information, please see www.sezindia.nic.in