A special economic zone is a geographical region
whose economic laws are more liberal than the economic laws in the rest
of the country. Special Economic Zone encompasses a wide range of zones
such as
Free Trade zone: A free trade zone is a zone where normal trade
barriers such as tariffs and quotas are eliminated. Free trade zones
involve the import of raw materials and export of finished products.
Most of the FEZ's are located in developed countries.
Industrial Estate: An area owned by a developer and it is
divided into various plots for lease or sale to manufacturing or
commercial concerns which may share common service.
Free Port: A free port is a port or area with relaxed
jurisdiction with respect to the country of location. The main aim of
special economic zone is to attract foreign investors so that foreign
investment increases in the country.
SEZ in India
The government of India has recognized the need to spur foreign
investment in India and to boost the country's exports, in April 2000,
the government of India announced the introduction of the special
economic zone. More than 500 SEZs have been proposed and 220 have
already been created. The special economic zone act was passed in 2005.
SEZs are proposed to be set in public, private, joint sector or by the
state government. Some of the export processing zones are also converted
into special economic zone. Some of such conversions are:
