sez'z in india
[2007] 80 SCL 103 (MAG) Special Economic Zones in India TANUJ BHUSHAN AND APARNA SHARMA
To provide an internationally competitive and hassle free environment for exports, the Government had introduced the concept of SEZ in the Export-Import Policy, 2000. This concept has transformed the focus solely from exports to multi market where the equivalent weightage is given to tourism, township, ports and it is not confined to manufacturing alone. This article attempts to analyse the SEZ in India, types of SEZ and incentives and facilities offered by SEZ. The authors are of the view that this is the most controversial reform announced in recent times and make a pointer to some areas which need to be reviewed INTRODUCTION
1. In the era of global integration through World Trade Organisation, the deepening of regional trade blocks is taking place. All over the world, whether developed nation or developing nation, there is a push for harmonization of tax incentives and liberalisation of telecommunication and information technology. In this process the concept of zones has developed. Many consider that it facilitates trade but for some it is a stumbling block to liberalization. They argue that a successful zone may be used as a safety valve, providing jobs and foreign exchange earnings and thus easing the pressure on policy makers to undertake economy wide reforms.1
The traditional concept of these zones was to promote exports which was fenced in an enclave and suffered from dominance of public sector. But the emerging concept has now transformed the focus solely from exports to multi market where the equivalent weightage is given to tourism, township and ports and it is confined to manufacturing alone.2
SEZ IN INDIA
2. Similar attempts were made in India also and EPZ were established. From the failure of EPZ3 and Government s Policy to liberalise and attract more and more Foreign Direct Investment, the concept of Special Economic Zone evolved. The key
To provide an internationally competitive and hassle free environment for exports, the Government had introduced the concept of SEZ in the Export-Import Policy, 2000. This concept has transformed the focus solely from exports to multi market where the equivalent weightage is given to tourism, township, ports and it is not confined to manufacturing alone. This article attempts to analyse the SEZ in India, types of SEZ and incentives and facilities offered by SEZ. The authors are of the view that this is the most controversial reform announced in recent times and make a pointer to some areas which need to be reviewed INTRODUCTION
1. In the era of global integration through World Trade Organisation, the deepening of regional trade blocks is taking place. All over the world, whether developed nation or developing nation, there is a push for harmonization of tax incentives and liberalisation of telecommunication and information technology. In this process the concept of zones has developed. Many consider that it facilitates trade but for some it is a stumbling block to liberalization. They argue that a successful zone may be used as a safety valve, providing jobs and foreign exchange earnings and thus easing the pressure on policy makers to undertake economy wide reforms.1
The traditional concept of these zones was to promote exports which was fenced in an enclave and suffered from dominance of public sector. But the emerging concept has now transformed the focus solely from exports to multi market where the equivalent weightage is given to tourism, township and ports and it is confined to manufacturing alone.2
SEZ IN INDIA
2. Similar attempts were made in India also and EPZ were established. From the failure of EPZ3 and Government s Policy to liberalise and attract more and more Foreign Direct Investment, the concept of Special Economic Zone evolved. The key