SEZs in India
“It is defined as an Act to provide for the establishment, development, and management of the Special Economic Zones for the promotion of exports and for matters connected therewith or incidental thereto.”
As of 31st January 2021; 265 SEZs are operational in the country. About 64% of the SEZs are located in five states – Tamil Nadu, Telangana, Karnataka, Andhra Pradesh and Maharashtra.
- The SEZ policy in India first came into inception on April 1, 2000.
- The prime objective was to enhance foreign investment and provide an internationally competitive and hassle-free environment for exports.
- The idea was to promote exports from the country and realize the need for a level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally.
- Subsequently, the SEZ Act 2005, was enacted to provide the umbrella legal framework, covering all important legal and regulatory aspects of SEZ development as well as for units operating in SEZs.
- SEZ units used to enjoy 100% income tax exemption on export income for the first five years, 50% for the next five years, and 50% of the ploughed back export profit for another five years
The SEZ Act's primary goals are as follows:
- To generate more economic activity.
- Increasing the export of goods and services.
- To create more employment
- To increase both domestic and foreign investment.
- To construct infrastructure facilities
The following table gives data about the SEZs as of 31st January 2021
| SEZs approved | 425 |
| SEZs notified | 378 |
| SEZs approved in-principle | 33 |
| SEZs operational | 265 |
Growth by the 31st December 2020; 22.84 lakh persons have been employed in the SEZs, the division of which is given below:
- Number of persons employed in the Central Government SEZs – 186768
- Number of persons employed in the state/private SEZs set up before 2006 – 98309
- Number of persons employed in the SEZs notified under the act – 1999871
- List of SEZs in India:
- SEEPZ Special Economic Zone (Mumbai),
- Kandla SEZ
- Cochin SEZ
- Madras SEZ
- Visakhapatnam SEZ
- Falta SEZ
What are the benefits of a Special Economic Zone?
The goal is to provide a level playing field for all domestic enterprises to compete on a global scale, with infrastructure support from both the state and federal governments.
- Duty-free import from the same country or other countries for the development, operations, and maintenance of SEZ units
- Export income is entirely exempt for the first 5 years, 50% for the next 5 years thereafter and 50% of the plowed back export profit for the next 5 years
- Exemption from Minimum Alternate Tax (MAT), Central Sales Tax, Service Tax, and State sales tax
- Single window hassle-free clearance for Central and State level permissions
- No need for an import license
- For a few of the manufacturing segments, 100% FDI is allowed
- Profits earned can be repatriated without the need for dividend balancing.
- No need for discrete documentation for customs and export-import policy
- Availability of developed plots and ready-to-use space in many SEZs
- SEZ enterprises are entitled to incentives, that may include free electricity, water supply, subsidy on land prices, etc.
- Employer-friendly labor laws
IT- SEZ in Ahmedabad, Gujarat, India
Million Minds is an upcoming IT & ITeS SEZ in Ahmedabad a Project by Ganesh Housing, This will Have everything one can expect from a It-SEZ, The Goal is to provide best infrastructure to the people of Gujarat by inviting all the giant corporates like google, Microsoft, Dell, Lenovo etc having their new offices in the larger than life space offices of Million minds in Ahmedabad,