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What kinds of special economic zones are there in India and what can a foreign enterprise make use of them?

Q&A

There are 4 of them:

  • Special Economic Zones for Multiple Sectors – They are areas where manufacturing, trading and warehousing business may be set up within two or more sectors;
  • Special Economic Zones for Specific Sectors – They are specific areas that are exclusively for products and services within a particular sector. Generally, there will be preferential treatments – such as reduction or exemption of taxes and duties – but this will be dependent on the industry in question;
  • Special Economic Zones for Free Trade and Warehousing – They are areas that are “deemed foreign territory”, which attempt to facilitate import and export of goods and conduct trade transactions in a free currency. They are famed for their special storage infrastructure and high-quality transportation; and
  • Alternative Special Economic Zones – They are areas that deal with IT, ITES, handicraft, biotechnology, non-conventional energy, and gems and jewelry industries. Companies therein normally enjoy tax benefits and reductions in rents and utility bills.


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