India was one of the first countries in Asia to recognize the effectiveness of the export processing zone model in promoting exports, and in 2000, the Indian government announced a Special Economic Zones (SEZ) policy, to encourage larger foreign investments in India. A SEZ may be set up in the public, private or joint sector, or by a state government. Since 2007, over 500 SEZs have been proposed, and more than 250 have been created.
SEZ’s are deemed ‘foreign territory’ for the purpose of trade operations, duties and tariffs. Business entities may be established in SEZs for a variety of activities, which are explained more in this article.
With the goals of economic competitiveness and easier exporting, SEZs function as fast growth engines which can boost manufacturing and create new job opportunities at an unprecedented scale.
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For more information about doing business in Special Economic Zones in India, please contact our business consultants in India.
