Special economic zone is a set of geographical regions which has different types of laws and this law has more liberty than the economic laws of a country. India has segregated the SEZ laws as per the individual laws of the different regions. The main concept of SEZ is to bring the large divisions to the states to develop the economic and industrial opportunities for the new employment. SEZs are the major engines for economic growth. It has special types of economic zones and the main purpose of SEZ is to trade the operations along with the duties of tariffs. 

Defining a special economic zone and its types 

Free trade zone 

It is a type of classical special economic zone which has a wide range of geographical areas where the products have been manufactured and processed. 

Export processing zone

An export processing zone is a set up area of the economic zone which has influenced commercial and industrial exports. These exports have encouraged financial growth by investing from the foreign entities. 

Free zones 

Free zones or the free economic zones have different types of classifications such as free economic territories to design the administration of commerce and trade of different countries. Industrialist estates

The industrial estates are responsible for making available the infrastructure facilities for the new business owners when it is required. The industrial estate consists of industrial park, zone and some industrial township of the related terms which have been used to indicate the industrial estate.   

Free posts 

The free posts have been established in the government areas with the no taxation policies for evaluating the economic growth. 

Urban enterprise zone 

The urban enterprise zone is an area where policies have been made to influence economic growth. 

SEZ in India and is salient features 

The important features of the SEZ in India has been described below, 

  • The SEZ will provide the self certifications for the importing and exporting of the products 
  • The routine of the examination will not be made until the development officer gives the special order from the authority 
  • The units of the SEZ can be the subcontract part of the production process within different types of units 
  • The custom procurement duty varies from the capital assets and raw materials from different domestic markets and the main facility is the documents can be submitted within single locations within short time

SEZ and its fundamentals 

  • SEZ are fundamentally distinct from the traditional free zones and they offer bigger range of activities such as single window management 
  • Provides the appropriate facilities on the infrastructure and transportation 
  • Minimum labor cost and has the stability on the legal regime

Impact of SEZ in Indian economy 

The role of SEZ in the Indian economy has been listed below, 

  • SEZ provides a competitive advantage in the international market
  • It enhances the GDP rate along with the encouragement of FDI 
  • The Indian market can increase the share in the global exports
  • 26% of the total export of India has accounted in the SEZ export

SEZ Act 2005 and its objectives 

The SEZ act 2005 has provided a legal framework for the to establish the SEZ and also it can be operated as the unit in different zones. The objectives of the SEZ Act 2005 is,

  • Generating the additional activity of the economics 
  • Promoting the exportations of the products and services 
  • Promotion of the investments from the domestic market and the foreign sources 
  • Creating the employment opportunities in different regions  
  • Developing the infrastructure facilities to grow the economy  

List of SEZ in India 

  • Karnataka SEZ 
  • West Bengal SEZ 
  • Kandla SEZ
  • Noida SEZ 
  • Cochin SEZ.
  • Madras EPZ SEZ.
  • Cochin SEZ
  • Azadi Ka Mahotsav
  • Mumbai SEZ

Conclusion 

It can be concluded that the SEZ has a significant impact on the Indian economy. This process will attract the investors of the private companies to invest in the particular zone and the companies can get free access to some local and federal taxes. It is necessary while locating the geographical area within a specific country which is essentially situated outside of the borders for the taxation purposes. The goods can be reconfigured and re-exported under the regulations that are not connected with the custom.