2. Concept and Meaning of SEZ India was one of the first in Asia to recognize the effectiveness of

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2. Concept and Meaning of SEZ India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000 SEZ in India 3. Definition of SEZ Special Economic Zone means an area that has been specified as an enclave that is duty free and is treated as a foreign territory for various purposes such as tariffs, trade operations, and…show more content…
Benefits from SEZs Investment of the order of Rs.100,000 crore including FDI of US $ 5-6 billion by the end of December 2007, and 500,000 direct jobs by December 2007. At present, 1016 units are in operation in the SEZs, providing direct employment to over 1.79 lakh persons; about 40 per cent of whom are women. Exports from the SEZs during the 10-year period could touch 352 billion dollars, nearly half of India’s total annual exports, with IT and ITeS SEZs contributing 30 per cent at 105 billion dollars SEZ in India 7. Facilities of SEZ in India Exemption on duties on Indian capital goods and inputs are offered as per the requirements of the approved business activity Taxes are either exempted or waived and even reimbursed in case they are paid in advanced to the concerned authority Duty-free imports of spares, raw materials, capital goods, and consumables are offered as per the requirements of the approved business activity Preferential treatment of these units to the Indian market for easy dissemination of their products and / or service Rejected commodities (specifically barred commodities cannot be sold) within an overall limit of 50% may be sold in the domestic tariff area (DTA) on payment of respective duties as applicable after proper notification to the Indian customs authorities. And such sales of commodities in the domestic tariff area shall be
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