ECONOMICS PROJECT

Topic : Special Economic Zones

Submitted to : Submitted by :
Dr. Sanjiv Singh Bhadauria Yashika Gupta
Asst. Professor Swati Sharma
ALS ,AUMP B.A.LLB (H) 5Thsem
 INTRODUCTION
What is Special Economic Zone ?
Special Economic Zone (SEZ) is a specifically delineated duty
free enclave and shall be deemed to be foreign territory for the
purposes of trade operations and duties and tariffs. In order
words, SEZ is a geographical region that has economic laws
different from a country's typical economic laws.
According to the World Bank in 2008, the modern-day special
economic zone typically includes a "geographically limited
area, usually physically secured (fenced-in); single
management or administration; eligibility for benefits based
upon physical location within the zone; separate customs area
(duty-free benefits) and streamlined procedures."
History of Special Economic Zones :
The first modern SEZs appeared in the late 1950s in
industrialized countries. They were designed to attract foreign
investment from multinational corporations. The first was
in Shannon Airport in Clare, Ireland. In the 1970s, zones were
established in Latin America and East Asia. The first one in
China appeared in 1979 ,by Deng Xiaoping was the
Shenzhen Special economic zone .
SEZs were introduced to India on 1st April 2000, following
the already successful SEZ model used in China. Prior to their
introduction, India relied on export processing zones (EPZs)
which failed to make an impact on foreign investors.
 OBJECTIVES OF SEZs
• SEZ’s enjoys tax breaks, simplified procedures, less
regulations and restrictions, exemption from customs and
duties, all of which is done to :
• Generate additional Economic activity
• Promote exports of goods and services
• Promote Investment from domestic and foreign sources
• Create employment opportunities
• Develop Infrastructure facilities
 ADVANTAGES OF SEZs
• Abundant supply of skilled and semi-skilled labor across all
industry sectors.
• Exemption from excise / VAT on domestic sourcing of capital
goods for project development .
• No foreign ownership restrictions in developing zone
infrastructure and no restrictions on repatriation .
• Exemption from import duty, VAT and other Taxes .
• Has host of Public and Private Bank chains to offer financial
assistance for business houses .
• Procedural ease and efficiency for speedy approvals, clearances
and customs procedures and dispute resolution .