Special Economic Zones
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. It is a geographical region that has economic laws different from a country1s typical economic laws. Usually the goal is to increase foreign investments.
The Special Economic Zone policy in India first came into inception on April 1, 2000. The prime objective was to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. The idea is to promote exports from the country.
The policy relating to SEZs so far contained int he foreign trade policy. The SEZ Act, 2005 provides the umbrellay legal framework covering all important legal and regulatory aspects of SEZ development as well as for units operating in SEZs.