Paper
A Study of impact of Domestic Procurement in SEZ exports with reference to SEZ Pithampur
Shuchi Khandelwal * Dr.Nishith Dubey**
Abstract
Over the past few years, the policy of promoting zones has found favor with the government of India. In 2000, the government replaced the old EPZ regime by a new scheme of “Special Economic Zones” (SEZs) with several lucrative incentives/benefits that were not available in the earlier scheme. The Special Economic Zones Act,2005 was passed by the parliament in May 2005, received presidential assent on 23rd of June,2005.The draft SEZ rule came into effect on 10th Feburary,2006 providing single window clearance on matters relating to the central and state government. Government gives SEZs special policies and flexible measures, special tax incentives for foreign investment in SEZs, greater dependence on international trade activities .As there are various incentives provided by the government to promote exports from SEZ, one of the incentives is the reduction/neutralization/exemption of customs duty on import, export as well as from the domestic procurement. This is a added advantage to the exporters to supply goods at a competitive price. Domestic procurement enables the suppliers of the domestic market to open up a new sector for development.This paper attempts to find out the impact of the domestic procurement in exports of SEZ area thereby knowing the pattern of procurement over years by SEZ. This will enable the country to open up the new sector for the development and thereby improving the economy of the country.
Keywords: SEZ, Domestic Procurement, Exemption,Incentives.
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*Research Scholar,Indore,shuchi.khandelwal@gmail.com,9752258005
**Professor and Director-NITTTR, Bhopal,
Shuchi Khandelwal * Dr.Nishith Dubey**
Abstract
Over the past few years, the policy of promoting zones has found favor with the government of India. In 2000, the government replaced the old EPZ regime by a new scheme of “Special Economic Zones” (SEZs) with several lucrative incentives/benefits that were not available in the earlier scheme. The Special Economic Zones Act,2005 was passed by the parliament in May 2005, received presidential assent on 23rd of June,2005.The draft SEZ rule came into effect on 10th Feburary,2006 providing single window clearance on matters relating to the central and state government. Government gives SEZs special policies and flexible measures, special tax incentives for foreign investment in SEZs, greater dependence on international trade activities .As there are various incentives provided by the government to promote exports from SEZ, one of the incentives is the reduction/neutralization/exemption of customs duty on import, export as well as from the domestic procurement. This is a added advantage to the exporters to supply goods at a competitive price. Domestic procurement enables the suppliers of the domestic market to open up a new sector for development.This paper attempts to find out the impact of the domestic procurement in exports of SEZ area thereby knowing the pattern of procurement over years by SEZ. This will enable the country to open up the new sector for the development and thereby improving the economy of the country.
Keywords: SEZ, Domestic Procurement, Exemption,Incentives.
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*Research Scholar,Indore,shuchi.khandelwal@gmail.com,9752258005
**Professor and Director-NITTTR, Bhopal,