SEZ in India why do people find this?
 

OVERVIEW

In Asian countries India is one of the first to recognize the efficiency of the Export Processing zone (EPZ) model which is used to promoting exports and a the first Asian setup for EPZ was in Kandla in 1965. With an idea to surmount the demerits experienced on account multiplicity of controls and clearences. The Special Economic Zones Policy was announced in April 2000 with an idea to magnetize more and large foreign investments in India.

An area in a state which we can consider as Duty free zone in basically called SEZ. This area is free from high excise duties and charges by the government and they provide tax exemption on duties (IT, Excise, Customs, sales etc) and subsidies on use of water and electricity. It is an entity outside the custom boundaries of India in relation to authorized operations. We can Setup SEZ units for various purposes.

Manufacturing
Rendering of Services
Trading etc.