Summer Internship Project

A study on SEZ (Special Economic Zone)

Prepared by: Atharv Gupta

Enrollment Number:
20IIMPBBA33
BBA Batch 2020-23

Under the guidance of

(Mr. Swapnil Kharde)

ACADEMIC YEAR
2020 – 2023

Submitted To
Shree Chanakya Education Society’s
Indira Institute of Management-BBA, Pune

Affiliated To
An Autonomous Institute affiliated to SPPU

1
 A SUMMER INTERNSHIP PROJECT ON
STUDY OF SEZ (SPECIAL ECONOMIC ZONE) UNIT

Prepared By: - Atharv Gupta

Enrollment Number: (20IIMPBBA33)
BBA Batch 2020 – 2023

Under the guidance of

(MR. Swapnil Kharde)

Submitted To
Shree Chanakya Education Society’s
Indira Institute of Management-BBA, Pune

Affiliated To
An Autonomous Institute affiliated to SPPU

2
COLLEGE CERTIFICATE (by college)

3
Certificate of Internship

4
 Student’s Declaration

I undersigned Atharv Gupta a student of Indira Institute of

Management, Pune BBA 5thsemester, declare that summer
internship project titled “A Study On SEZ (Special
Economic Zone” is a result of my/our own work and
my/our indebtedness to other work publications, references,
if any, have been duly acknowledged. If I/we are found
guilty of copying any other report or published information
and showing as my/our original work, I understand that I/we
shall be liable and punishable by Institute or University,
which may include ‘Fail’ in examination, ‘Repeat study &
re- submission of the report’ or any other punishment that
Institute or University may decide.

Name: Atharv Gupta

Enrollment Number: (20IIMPBBA33)

Signature: atharvgupta

5
 ACKNOWLEDGEMENT

The project titled “A Study of Sez (Special Economic Zone) Unit”

which is part of the summer internship program of the BBA course
has been successfully completed. I take this opportunity to thank all
the people involved directly or indirectly in making this project a
success. Firstly, I would like to thank my external project guide M/s
Namita Sakhala CFO at Moonsez Consultants Pvt Ltd Pune for giving
me an opportunity to showcase my skills and talent. I would also like
to thank my internal project guide Mr. Swapnil Kharde for his timely
& valuable guidance throughout the project. Their constant
motivation accelerated my performance and helped me produce great
results. Thank you once again to one and all.

Atharv Gupta
(20IIMPBBA33)

6
 Table of Content

CHAPTER I: Introduction to the Topic

- Introduction to the title

CHAPTER II: Industry/ Sector Profile

- Overview of the industry/ sector

- Contribution of the sector towards GDP
- Major players

CHAPTER III: Company Overview

- History
- Mission, visions etc.
- Management
- Registered Address/ Number of branches
- Composition of Board
- Major customers
- Financial performance
- Functional overview
- Products

CHAPTER IV: Research Methodology

- Statement of problem
- Research Objectives
- Research design (Research Type)
-
CHAPTER V: Objective and Scope

CHAPTER VI: Data Analysis

- Data Analysis and Interpretation

CHAPTER VII: Findings & Suggestions

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CHAPTER VIII: Conclusions

CHAPTER IX: Bibliography

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 EXECUTIVE SUMMARY

Name of the company: Moonsez and Management consultants LLP

Importance of Project:SEZ is a specially designated duty-free enclave deemed to be a

foreign territory for the purpose of trade operations, duties, and tariffs. A Special Economic

Zone (SEZ) is a geographical region that has economic laws more liberal than rest of the

country’s general economic laws. SEZ Act and Rules were framed to attract foreign

investments into India, encourage exports from India to bring in more and more foreign

exchange into India, so they can invest more in India and make globally active.

- MOON SEZ Consultants Pvt Ltd provides an unmatched experience and

expertise in the field of SEZ Advisory, Compliances and operational

services.

- MOON SEZ takes active participation in Policy formulation, Amendment

of SEZ Rules, IT Policy drafting in co-ordination with Central and State

Government authorities.

9
Learnings:

1.Get to know about challenges and opportunities about the operations of a consultancy

firms.

2.Got an immense knowledge about Excel as I was working on it since last 35 days.

3. I experienced the corporate feeling which gives me a good exposure.

4. Time management is the big management lesson starting from catching the bus to

finishing the punching, checking and sorting the data of big clients like Mercedes Benz,

etc.,

10
11
 CHAPTER 1:
INTRODUCTION

12
1.1 Introduction to the title

To begin with, as a part of my BBA curriculum, I have done my internship training at MOON
SEZ CONSULTANTS PVT LTD which is located at Kalewadi . In this report I am going to
share my experience in the company for the period of 2 months. During my internship in
Moonsez I worked in DSPF, where I was extracting the data from the invoices and putting it
in excel template given by the company and handled an E-commerce site named Moon
Antique. So I’ll begin with how DSPF functions:-
1. Template Punching
2. Problem Solving
3. Request ID
4. Approval of Request ID
5. Approval of Authorized operator.
1). Template Punching - We get mail solicitations of specific organizations which we need to
punch in the succeed sheet under the format which is given to us by the actual organization.
2). Problem Solving - So that report is shipped off the clients for uncertainty taking care of
where every one of the issues tended to by clients and the representative of Moonsez who is
managing it.
3). Request ID-Firstly while creating every one of the subtleties should clear in the succeed
sheet and afterward after that when we green sign we continue through the most common
way of producing document in the succeed sheet and keeping in mind that taking a gander at
this information we see that the information is replicated or spilled as here immense measure
of cash isn't involved.
4). Approval of Request ID - While we do this cycle, we initially need to go to Moonsez
entry which is NSDL, after that we go DTA Service Procurement Service then we select the
month and year in which the receipt is punched and in conclusion the information of every
one of the months is punched.
5). Approval of Authorized Operator - So after the solicitation id is made it is ship off the
official and afterward, he checks and amend botches for the given report.
• Now I’ll explain about the E-commerce site that I handed and what was my work :-
The Moon Antique was the name of the site that I got to handle, so Moon Antique is a kind
online studio that has the largest variety of metal/brass statues, which have been uniquely
designed by the artists and have been given innovative finishing with colours and gem stones
to exceed your expectations for spiritual and decorative purposes. Each statue is being
provided with everlasting shine which literally requires - No Care.
Moon Antique sells large variety of statues in the form of Hindu Gods, including but not
limited to - The Nataraja (Dancing Shiva), The Ganesha (The Elephant head God), The Shiva
(The Destroyer of all evils), The Krishna, (The preacher of Geeta), The Vishnu (The creator

13
of the universe), Maa Durga (The Goddess on Tiger), Maa Saraswati (The Goddess of all arts,
knowledge and wisdom), Maa Lakshmi (The Goddess of wealth and money), The Buddha
(The Enlightened one), Goddess Tara, The Laughing Buddha (Budai), and many more.

Moon Antique have range of home décor status that has a large variety to choose from.
Animal statues include Elephants, Lions, Leopards, Cats, and Horses. These statues and other
brass showpieces are crafted with finesse to give a newer and greater look to your homes,
temples, altar, gardens, showrooms and offices. A special never before range of Singing
Bowls is available for healing and music therapy purposes. Helping Indian handicrafts take
over the world by promoting a brand that speaks to traditional and contemporary artisans.
The God idols for the pooja room are creative and gorgeous, created by expert teams who
carefully crafted each piece with attention to detail. In addition, we’re expanding our product
lines so you can shop for home decor items from a global catalog! With an eclectic range of
pure brass product items, you can find something unique for any special occasion or even a
gift for a beloved. Plus, all our things are made using the finest materials to ensure durability.
If you want to treat yourself to some pure Indian handicrafts, be sure to browse through our
range of exquisite items.
The Responsibility that I was liable for while handling the Moon Antique website is as
follows:-
1). I was told to audit and verify the stock of the brass status that came to the stores
warehouse and match the results available at the stock registry.
2). After verify and auditing of the stock I was responsible to take picture of every status that
came to the store, for the purpose of uploading the same pictures later at the website.
3). Later after getting the pictures I was to upload every single one of them to the website in a
well describe manner, showing the features and story of the status and stating the quantity
and price of each status.
4). Listing all the details of the every statue in company’s Tally account.

Special Economic Zone (SEZ) includes making available goods and services free of taxes
and duties, supported by integrated world class infrastructure for export production,
expeditious and single window mechanism (both for Central and State Government related
approvals) and a package of incentives to attract foreign and domestic investments for
promoting export led growth. SEZ Units are free to import from the domestic sources without
paying any duty on capital goods, raw materials, consumables, spare, packing materials,
office equipment, DG sets, etc. for implementation of their project in the zone without any
license or specific approval. Good which are imported duty free could be utilized over the
approval period of 5 years. Sales to DTA (Domestic Tariff Area) by SEZ units is always
regarded as import and is subject to all normal import duties, including Countervailing Duty,
SAD, etc.
SEZ Units are free from the periodic examination by Customs of export and import cargo.
SEZ units may sub-contract a part of their production through units in DTA/SEZ/EOU/EPZ
with the permission of the customs authorities. Sub-contracting may also be permitted for
processing abroad with the permission of the board of approval. Tax exemption for SEZ units
engaged in manufacture or providing services- A new section 10AA has been introduced in

14
the IT Act by SEZ Act, 2005 which provides that the units in SEZ which start manufacturing
or producing articles/ things or which start providing services on or after April 1, 2005 will be
eligible for a deduction of 100 percent of export profits for the first five years from the year
in which such manufacture/ provision of services commences and 50 percent of the export
profits for the next five years. Further, for the next five years a deduction shall be allowed of
up to 50 percent of the profit as is debited to the profit and loss account and credited to the
Special Economic Zone Reinvestment Reserve Account (subject to conditions).
Assesses has acquired land or building or has constructed building for the purposes of
business in SEZ. Tax holiday for SEZ developers- A new section 80-IAB has been introduced
in the IT Act vide SEZ Act, 2005 whereby a deduction of 100 percent of profits derived from
the business of developing SEZ (notified on or after April 1, 2005) would be available to
developer of SEZ for any 10 consecutive years out of 15 years beginning from the year in
which SEZ has been notified. Exemption under section 10(23G) that was available to
infrastructure capital fund or a cooperative bank on interest and long-term capital gains
investment had been extended to investment made by SEZ developers qualifying for tax
holiday under section 80-IAB of the IT Act.
No cap of foreign investments for SSI reserved items. The original assets are shifted and
establishment of the industrial undertaking is transferred to SEZ; and other specified
expenses are incurred. Given a choice one was allowed to choose the field in which he/she
was interested, so when initially my interview was conducted and even he talked about how
good DSPF and since then I have been curious to know about this sector which had a good
amount of knowledge of GST sector and that’s why when on first day I got the information
about that sector and that intrigued me towards this sector and since then I have been
gathering the confidential data of certain big companies and I have been working. SEZ
Online has been developed and implemented as per the directive of Department of
Commerce, Ministry of Commerce & Industry and the system enables electronic filing and
processing of important SEZ related transactions that SEZ Developers, Co-Developers and
Units have with SEZ administration. The system facilitates Uniform Validations and
Processes across all Zones / Units, Electronic filing & processing, Transparency in
Government transactions and Internet based Access and Use from Anywhere for
Convenience. Any supply of goods or services or both to a Special Economic Zone
developer/unit will be considered to be a zero-rated supply. That means these supplies attract
Zero tax rate under GST.
In other words, supplies into SEZ are exempt from GST and are considered as exports. So,
the data of big clients is giving to me in the form of invoices which is then punched in excel,
checked rectified and amid all this sorting is done for a certain client after this the final report
is send to the client and when it is approved by the client it is send to the officer for
exemption of tax. Special Economic Zone (SEZ) scheme is one of the export promotion
Schemes. A special economic zone (SEZ) is an area in which the business and trade laws are
different from the rest of the country. SEZs are located within a country's national borders,
and their aims include increasing trade balance, employment, increased investment, job
creation and effective administration. Moon Sez Group is engaged into the business of
providing wide range of SEZ Consultancy services to Developers/ Co-developers/Units etc.
In SEZ right from SEZ Approvals, Compliances, Material clearance from Customs,
SEIS/MEIS, etc. Moonsez Group is having a dedicated team of professional spread across
locations in India. We are headquartered in Pune with registered office in Mumbai and
operating from our services branches located at Bangalore, Gandhinagar, Gurgaon, Indore,
Kesurdi Mangalore, Nagpur, Noida, Phaltan.

15
 CHAPTER 2:
INDUSTRY PROFILE

16
A Special Economic Zone (SEZ) is a geographical region that has economic laws more
liberal than the rest of the country’s general economic laws. It is an area in which the business
and trade laws are different from the rest of the country. SEZs are located within a country’s
national borders. The basic objective to introduce SEZs was to bring large opportunities to
trade by introducing additional economic activity, promoting duty-free imports and exports,
and being engines for economic growth. Their aim includes increased trade balance,
employment, increased investment, job creation, and effective administration.

To encourage businesses to set up in the zone, financial policies are introduced. These
policies typically encompass investing, taxation, trading, specific quotas, customers, and
labor regulations. The first SEZ in India was established on 1 st January 1965 in Kandla Port,
Kutch (Gujrat).

In India, SEZ Act and Rules were framed to attract foreign investments into the
nation, encourage exports from India to bring in more foreign exchanges

SEZ Developers/Co- Developers/Units are entitled to various fiscal/non-fiscal

incentives and benefits as per SEZ Act and Rules. Manufacturing, servicing, trading,
reconditioning, repairs, etc. are some of the activities which are allowed in the SEZ.

2.2 INCENTIVES AND EXEMPTION PROVIDED TO SEZs IN INDIA: -

 Exemption from CGST- Exemption for any inter-state sale which is made by the
dealer to the registered dealer for manufacturing, packaging, processing, assembling,
trading, maintaining, and repairing in any Special Economic Zones unit for
development.
 Single window clearance from both Centre and State approvals.
 Duty-free imports which are 100% Income Tax exemption on the export income for
SEZ units under Section 10AA of the Income Tax Act for the first years, 50% for the
next 5 years thereafter, and then 50% of the ploughed back export profit for the next 5
years.
 Complete exemption on Income Tax earned through exports for SEZs units for the
first 5 years. Further 50% for the next 5 years- dividends/interests/long-term capital
gain earned from investments made for the development of Special Economic Zones.
The transfer of assets from an urban area to a special economic zone is exempted
from tax capital gains.
 Exempted from Minimum Alternate Tax.
 Exemption from state sales tax by the respective government.
 Exemption from excise duty for the development of SEZs in India.
 Exemption from Labor laws to encourage entrepreneurs to establish industrial units in
SEZs.

17
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2.3 STAKEHOLDERS OF SPECIAL ECONOMIC ZONES: -

2.4 Overview of SEZ

Sez A1, A2, A3 is a business unit of MOON SEZ Consultants Pvt Ltd which is a part of
Moon group of companies founded in 2006 by visionary leader and entrepreneur "CA Ratan
Moondra". Who started his remarkable journey as a Chartered Accountant in 1997 since then
he is transforming and leading various big projects towards success?

The Journey begins with Auditing, Assurance, Taxation, Advisory which then transformed
into EPZ/STPI/EOU Consultancy later with the introduction of SEZ Act in 2005 it gives the

18
birth to "Moon SEZ Consultants Private Limited" which is the flagship company of Moon
group.

We are serving our clients through our service branches located across multiple cities in India
and delivering through seasoned professionals backed by knowledge and experience of its
promoters.

19
 CHAPTER 3:
COMPANY PROFILE

20
 - HISTORY OF MOON SEZ

MOON SEZ Consultants Private Limited is a part ofthe Moon group of companies
founded in 2006 by visionary leader and entrepreneur “CA Ratan Moondra”, who started
his remarkable journey as a Charted Accountant in 1997 and later founded this organization
with an aim to do something new from his routine. MOON SEZ is serving its clients through
various service branches located across multiple cities in India and delivering through
seasoned professionals backed by the knowledge and experience of its promoters.

MOON SEZ Consultants offers “One Stop Solutions” to all SEZ-related requirements of
various stakeholders of SEZs. MOON SEZ takes active participation in Policy formulation,
Amendment of SEZ Rules, and IT Policy drafting in coordination with Central and State
Government authorities. MOON SEZ has more than 350 customers who are consultants using
technology and automation-driven compliance and process handling. As well MOON SEZ is
the only SEZ Consultant in India with a hybrid model of handling advisory, compliances, and
customs clearance.

- OPERATIONS OF MOON SEZ

 SEZ Approval Services
 SEZ Management and Operational Services
 Services of IT/ITES in Maharashtra
 IFSC Services
 And Other Services Related to SEZ/DTA/STPI/EOU etc.

- MISSION, VISION, AND VALUES OF MOON SEZ: -

Mission: To promote India and achieve the target of the greatest share in
the world trade activities and a creation of a strong infrastructure of
knowledge and line availability of information on SEZ to support the
business and working environment of SEZ corporations by creating an
integrated development which will initiate a steady flow of new ideas,
technology, and enhancing and creating a skilled workforce to support it.

21
 Vision: Moon SEZ is determined to be the world’s most prestigious
consultancy company in respect of the development of projects in SEZs.
Horizontal & vertical integration and implementation of a well-planned
mission to achieve the target set by SEZ policies in India by assisting in
each aspect of the development of SEZ in India.

Values: The values observed by MOON SEZ include: -

1. People-centric approach – Recognizing that every employee

has equal contribution in delivering the best of their potential.

2. Customer focus – Focusing on things from the customer’s

point of view and catering to the specific needs and wants of
each customer.
3. Integrity – Developing the organization through trust and
support of all the stakeholders involved.

- Organization Management

C.A RATAN MOONDRA

DIRECTOR OF MOON SEZ CONSULTANTS PVT. LTD.

22
More than 16 years of rich experience in SEZ Consultancy services, STPI, EOU, and Direct
and Indirect tax advisory. Founder Director of the Company M/s. Moon SEZ Consultancy
Pvt. Ltd.

“The first step of success is the courage to think big and the last step is to manage the same
with no excuse for limited resources.”

ASHISH JHAGARAWAT

CEO & DIRECTOR OF MOON SEZ CONSULTANCY PVT. LTD.

More than 6 years of experience in the field of SEZ consultancy, day-to-day operations, and
management of SEZ projects.

“Dream big and strive hard to achieve such dreams while being a perfectionist.”

GYAN RANJAN
EXIM HEAD

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 • Gyan Ranjan is heading EXIM department at MOON SEZ since last 12+ years. He is the
backbone of MOON group of company and is acting as Trouble-shooter as well for any
department

NAMITA SAKHALA
CHIEF FINANCIAL OFFICER

Namita heads Accounting, DTA Procurement of goods and services including its related
compliance at MOON Group, Namita is handling a back-office team of close to 25+
professionals including M.B.A. (Finance), M.B.A. (International Business), B. Comet and
front-end team of KPOs across India locations

RADHIKA PATEL
COMPLIANCE HEAD

Radhika is a Company Secretary by Qualification and has also completedL.L.B, she is

looking for after entire approval and SEZ Compliances division at MOON SEZ for PAN
India operation

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 - REGISTERED ADDRESS/ NUMBER OF BRANCHES

Registered Office:
2/D2, Green Field Complex, J.V. Link Road, Andheri (E), Mumbai-
400096

MOON SEZ Group is having a dedicated team of professional spread

across 16 different locations in India. We are headquartered in Pune with
registered office in Mumbai and operating from our service branches
located at Bangalore, Gandhinagar, Gurgaon, Indore, Kesurdi Mangalore,
Nagpur, Noida, Phaltan.

- COMPOSITION OF BOARD
the board consists of the 3 directors of the company CA Ratan moondra,
Ashish Jhagarawat and Durga Ratan Moondra and the managers as Gyan
Ranjan head of Exim department and Namita Sakhala as Chief Financial
Officer and Radhika Patel as the Compliance Head of the company

- MAJOR CUSTOMERS

Moon Group Clientele has big customers like Datwyler, EMC, Global
Logic, Maxxton, Mercedes – Benz, MIDC, Patanjali, Tata Elxsi, Yash,
Teradata, Polaris

- FINANCIAL PERFORMANCE

Moon Sez Consultants’ operating revenues range is INR 1 cr - 100 cr for

the financial year ending on 31 March, 2019. It's EBITDA has increased
by 12.23 % over the previous year. At the same time, it's book networth
has increased by 38.75 %.

- OVERVIEW STRUCTURE

The Moon Group of Companies are sister concern that operates in different domains related
to SEZ and DRA processes, thus they include,

25
26
 CHAPTER 4:

OBJECTIVES AND SCOPE

27
Objectives of the Project-

The primary goal of the SEZ Scheme is the age of extra financial action,

advancement of products of labor and products, advancement of venture from home grown
also, unfamiliar sources, making of business valuable open doors alongside the turn of events
of framework offices.

The main objectives of the project are –

1)To understand the process of SEZ happening around in an organization

2)To study the process related to import and export of SEZ.

3) To know how GST is exempted of certain clients in this firm.

4) To study how GST as complex field is studied in the organization of SEZ.

Scope of this Project–

To understand first how a consultancy firm works what is it they actually do here in Moon
SEZ we see that-

 All Goods and services supplied from Domestic Tariff Area (DTA) to SEZ are treated

as deemed exports and all Goods and services supplied by SEZ units to Domestic

28
 Tariff Area (DTA) are treated as imports into India and subject to all procedures and

rules applicable in case of normal imports into India.

 SEZ’s are deemed to be a airport, port, Land Custom stations, and Inland container

depot under the Customs Act.

 SEZ Developers/Co-developers/Units are entitled for various fiscal/non-Fiscal

incentives and benefits as per SEZ Act and Rules

 Fund-raising services for individuals, corporations, and governments

 Asset management and global portfolio diversification undertaken by pension funds,

insurance companies and mutual funds.

 Wealth management.

 Global tax management and cross-border tax liability optimization, which provides a

business rotundity for financial intermediaries, accountants and law firms.

 Global and regional corporate treasury management operations that involve fund-

raising, liquidity investment and management and asset-liability matching.

 Risk management operations such as insurance and reinsurance.

 Merger and acquisition activities among trans-national corporations.

 Exemption from minimum alternate tax under section 115JB of the Income Tax Act.

 External commercial borrowing by SEZ units up to US $ 500 million in a year

without any maturity restriction through recognized banking channels.

29
 CHAPTER 5:
Research Methodology

30
 CHAPTER 6:
DATA ANALYIS

31
 DATA ANALYSIS AND INTERPRETATION:

India achieves $400 billion merchandise exports well before target date,
Keeping in view the critical role of exports in catalysing economic activities which were
impacted by the COVID-19 pandemic, the Department of Commerce embarked upon the
inspiration provided by Honorable PM Narendra Modi during his Address and interaction
with exporting community, Ambassadors / HCs / Commercial Missions, Line Ministries/
Departments, State/UTs, EPCs, Commodity Boards/ Authorities, Industry/Trade Associations,
etc on 6th August 2021 on the theme of “Local Goes Global - Make in India for the World”.
During the Address, Hon’ble Prime Minister set an ambitious target of US$ 400 billion of
merchandise exports for 2021-22 for the nation to achieve. He exhorted the exporting
community to search for new products in the export basket, look for newer destinations and
ensure deeper penetration of the existing product and markets.
Thus, to achieve the target and approach set by the Honorable PM, the Department of
Commerce disaggregated the $400 Billion target in terms of regions and countries as well as
product/commodity groups. The government prepared a detailed strategy for achieving the
targets and an elaborate monitoring system. The disaggregated targets have enabled tight
monitoring by Country/Region/Mission/Export Promotion Councils. The Commodity
Divisions of Department of Commerce have held regular review meetings with the concerned
EPCs under their jurisdiction.
Thus, notwithstanding the challenges posed by successive waves of Covid, India’s
merchandise trade performance has shown impressive growth and exports remained above
USD 30 Billion for eleven consecutive months (likely to be twelve consecutive months at the
end of March) during April to February wherein December 2021 recorded the highest ever
monthly merchandise exports recorded at USD 39.3 billion. India’s merchandise exports
soared to a record high of US$417.81 billion during FY 2021-22, surpassing the
government’s target of US$400 billion. The export growth was mainly driven by a surge in
demand for products like petroleum, cotton yarn, textiles, chemicals, and engineering goods.
At the same time, Indian goods imports also surged at US$610.22 billion, mainly driven by
increase in imports of crude, coal, gold, and electronics. Merchandise exports from India
reached a new high at US$417.81 billion during the financial year (FY) 2021-22, marking a
surge of 43.18 percent over the US$291.18 billion recorded in the previous fiscal, and an
increase of 33.33 percent over US$313.36 billion during FY 2019-20. This 2021-22 figure
excludes export data from non-EDI (electronic data interchange) ports, and is expected to be
even higher. At the same time, India’s merchandise imports in FY 2021-22 soared to
US$610.22 billion, an increase of 54.71 percent over the U$394.44 billion registered during
FY 2020-21, and an increase of 28.55 percent over US$474.71 billion in FY 2019-20. India’s
trade deficit widened to 87.5 percent to US$192.41 billion in FY 2021-22 as against
US$102.63 billion in the previous fiscal.
Merchandise exports from India reached a new high at US$417.81 billion during the financial
year (FY) 2021-22, marking a surge of 43.18 percent over the US$291.18 billion recorded in
the previous fiscal, and an increase of 33.33 percent over US$313.36 billion during FY 2019-
20. This 2021-22 figure excludes export data from non-EDI (electronic data interchange)
ports, and is expected to be even higher. At the same time, India’s merchandise imports in FY

32
2021-22 soared to US$610.22 billion, an increase of 54.71 percent over the U$394.44 billion
registered during FY 2020-21, and an increase of 28.55 percent over US$474.71 billion in FY
2019-20. India’s trade deficit widened to 87.5 percent to US$192.41 billion in FY 2021-22 as
against US$102.63 billion in the previous fiscal.

Key drivers of India’s export growth during FY 2021-22

This is the first time India has achieved its ambitious target of crossing the US$400 billion
mark in merchandise exports. Driving the surge in exports is pent up unmet demand during
major waves of the COVID-19 pandemic as well as the expansionary monetary policy
adopted by developed countries to deal with the impact of the pandemic.
Major beneficiaries of India’s export growth include petroleum products (152.1 percent);
cotton yarn, fabrics, made-ups, handloom products, etc. (55.1 percent); manmade yarn,
fabrics, made-ups, etc. (46.9 percent); engineering goods (45.5 percent); jute products (36.2
percent); leather and leather products (32.2 percent); readymade garments of all textiles (29.9
percent); and handicrafts, excluding hand-made carpets (22 percent). Other commodities that
witnessed an increase in export demand include organic and inorganic chemicals, marine
products, mica, coal, and other ores and minerals, including processed minerals. Exports
surged year-on-year (YoY) to the United States by 46.4 percent, the United Arab Emirates
(66.9 percent), Bangladesh (64.5 percent), Netherlands (90.5 percent), Singapore (26.8
percent), Hong Kong (7.8 percent), United Kingdom (28 percent), Belgium (90.4 percent)
and etc., are some countries.

Factors driving increase in Indian imports during FY 2021-22

India’s import of merchandise goods has surged even higher than its export target, resulting in
a high trade deficit at 87.5 percent. Major factors contributing to this soaring import bill
include sharp growth in imports of crude oil, coal, gold, electronics, and chemicals as the
economy reopened and business and consumption activity stabilized. Rising prices of
commodities, including crude oil and coal, have played a significant role in adding to India’s
import valuation. China remained the top source for Indian imports during FY 2021-22,
followed by the UAE, USA, Saudi Arabia, Iraq, and Switzerland. Other important countries

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contributing to India’s import basket during FY 2021-22 were Hong Kong, Singapore, South
Korea, and Germany.

Balance Sheet of Moonsez stating how trade deals take place

 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.

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 While India’s SEZs are like those found in other parts of Asia, business leaders that
are considering setting up in a SEZ should seek to understand how SEZs work in
India. Each SEZ is unique. Many business leaders conduct market entry studies that
compare sites, resources, tax incentives, and costs before making site visits.

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 CHAPTER 7:
FINDINGS AND SUGGESTIONS

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1. Finding –

 It is very encouraging sign that the total exports from India have been
showing increasing trend in the first half of the study period (i.e., five
years).
 The trend of total exports in the second half of the period has shown
fluctuating trend.
 The increase over the period was 2.72 times.

2. Suggestion –

 That Special Economic Zones has been playing a crucial role in generating
additional economic activities at the National levels.
 The export and employment generation objectives of the SEZ should not result
in compromising the quality of the working conditions within the zones.
 To attract more FDI, Country needs to improve the investment climate of the
country because SEZs are also a part of an economy and these enclaves can’t
operate efficiently if there exist the supply bottlenecks.

3. Observation –

 The SEZ’s could drastically improve the economic activity in the country,
make the country’s export competitive and globally noticeable, be net
foreign exchange earner and provide immense employment opportunity.
 But this should not be done at the cost of bringing down the agricultural
activities, Land grabbing and real estate mafia should be properly
regulated so that the common man is not the net sufferer to get the net
foreign exchange earner up and running.
 As compared to China where majority of the SEZ’s were setup by the
government, similar should be adopted in India, if not fully it should be a
public-private partnership and regulatory bodies should be properly
managed to weed out fallacies.

 Needless to say, that Special Economic Zones has been playing a crucial
role in generating additional economic activities at the National levels.

 The export and employment generation objectives of the SEZ should not
result in compromising the quality of the working conditions within the
zones.

 To attract more FDI, Country needs to improve the investment climate of

the country because SEZs are also a part of a economy and these enclaves
can’t operate efficiently if there exist the supply bottlenecks.

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CHAPTER 8: Conclusions

38
Conclusion

 However, policy changes remained slow and extremely cautious. Even the
introduction of the SEZ policy did not impact on the SEZ performance.
 Their performance continued to slide SEZs are expected to induce dynamism in the
export performance of a country by eliminating distortions resulting from tariffs and
other trade barriers, the corporate tax system, excessive bureaucracy, and missing
infrastructure.
 Fall in the protective walls and reforms in the tax system reduced the gap between
EPZ and other units in the wider economy in respect of tax incentives.
 There should have been significant improvement in the quality of infrastructure and
governance to compensate them for the lost benefits. But this did not happen.
 Dysfunctional policies, regulations, lack of single window clearance facilities, poor
attitude of the officials, centralize governance, stringent labour laws and poor physical
and financial infrastructure, all centralize governance, stringent labour laws and poor
physical and financial infrastructure, all study argues that the SEZ scheme requires a
complete re-orientation if the hype created over SEZs is to be justified. Successful e-
Governance initiative of Department of Commerce, Ministry of Commerce and
Industry for seamless processing of Administrative and Customs transactions with
Efficiency and Transparency in Special Economic Zones (SEZs).
 100% implementation across all SEZs in the country. Designed to meet needs of SEZ
Units, Developers, DTA Parties, SEZ Customs, Development Commissioner Office
as per SEZ Norms and Regulations.

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40
 CHAPTER 9:

BIBLIOGRAPHY

41
 1. www.moonsez.com
2. www.gst.gov.in
3. www.taxguru.in
4. www.investopedia.com
5. www.tax2win.in/guide/gst-exemption
6. www.sezindia.nic.in/

BOOKS

7. Goods and Services Tax (G.S.T) in 2022 written by Prof. VP Agrawal

8. GST for Layman in 2017 written by Apeksha Solanki.
9. Taxmann’s GST Mini Ready Reckoner in 2022 written by CA Akhil Singla.
10. GST: Explained for Common Man in 2018 written by Sumit Dutt Majumder.
11. Income Tax Including GST in 2022-2023 written by Dr. Vinod K Singhania.
12. Handbook on GST Audit by Tax Authorities in 2020 written by CS Sanjay
Malhotra, CMA Anil Sharma.
13. GST Simplified in 2017 written by BalasubramanyamKS.
14. Special Economic Zones in India: Myths and Realities in 2008 written by
Amitendu Palit.

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