Government of India announced the Special Economic Zones (SEZs) Policy in April 2000 with a view to create world-class infrastructure and ease out multiplicity of controls and clearances and provide stable fiscal policy regime to attract larger foreign investments in India.
Subsequently, in order to instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime and thereby generating greater economic activity and employment through the establishment of new SEZs, a comprehensive legislation i.e., the Special Economic Zones Act, 2005, was passed by Parliament in May, 2005 and received Presidential assent on the 23rd of June, 2005. This act was followed by adoption of SEZ Rules, which came into effect on 10th February, 2006. The Act and Rules provided the basic framework of establishment and management of SEZs in India with drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments.
The new legislative and policy framework aims at generation of additional economic activity by attracting investment from domestic and foreign sources and promote exports of goods and services from India leading to creation of employment opportunities and development of infrastructure facilities. The new SEZ Policy also envisages key role for the State Governments in Export Promotion and creation of related infrastructure.
The new SEZ framework provide for :
- Simplified procedures for development, operation, and maintenance of the Special Economic Zones and for setting up units and conducting business in SEZs;
- Single window clearance for setting up of an SEZ;
- Single window clearance for setting up a unit in a Special Economic Zone;
- Single Window clearance on matters relating to Central as well as State Governments;
- Simplified compliance procedures and documentation with an emphasis on self-certification.
GOI Acts / Policies :
- SEZ ACT
- SEZ Rules and Amendments
SEZs in India :
