Special Economic Zones (SEZ)

Special Economic Zones (SEZ)

Part of: GS Prelims and GS- III- Economy

In news The government will soon free up unused built-up area worth about ₹30,000 crore and idle land inside Special Economic Zones (SEZs) for other economic activities.

• The move to free up unutilised land parcels is likely to be operationalised by the end of August 2021, as part of a simpler regulatory regime that the government is ringing in for SEZs, which account for about 30% of India’s exports.

What is Special Economic Zone (SEZ)? 

• It is a specifically delineated duty-free enclave, deemed to be foreign territory for the purposes of trade operations and duties and tariffs. 
• Goods and services going into the SEZ area from Domestic Tariff Area (whole India except SEZ) shall be treated as exports and goods coming from the SEZ area into DTA shall be treated as imports. 
• SEZ units may be set up for manufacture of goods and rendering of services. 
• The business and trade laws are different from the rest of the country. 
• SEZs are located within a country’s national borders.
• Their aims include increasing trade balance, employment, increased investment, job creation and effective administration

News Source: TH