Benefits Of Special Economic Zones In India

By Author: Alice Coope
Total Articles: 213
Comment this article

A Special Economic Zones (SEZ) is a stipulated and duty-free territorial domain having various economic regulations from those of the country in which it is situated. In certain countries, such a region is taken as an estimated foreign area.

Special Economic Zones in India is also taken as a trade capacity development tool, with the aim to promote quick economic growth using business and other tax incentives to gain foreign investment and technology. Today there are approximately 3,000 SEZ’s functioning in 120 countries, which account for more than US$ 600 billion in exports and 50 million jobs. By providing privileged terms, SEZ’s attract lucrative investments and foreign exchanges, generate employment opportunities and also gives a boost to technological development and infrastructure.

Today majority of developing nations around the globe have recognized the relevance of encouraging international trade for a sustained economical growth and maximized contribution to the GDP of the nation. As a part of its commitment to liberalization, Government of India (GoI) over the past decade adopted a multi-pronged approach ...
... to enhance foreign investment in India. The GoI further pushed forward the second-generation reforms and has made numerous policy modifications to attain this objective.

Benefits of Special Economic Zones

Today numerous engineering services companies have contributed to the development of special economic zone in India. An eminent example is the Precision Engineering and Manufacturing SEZ unit in Belgaum. This unit acts as a base for foundry operations for multiple industrial and automotive facilities. There is presence of more than 100 foundries and 150 machine shops. Simultaneously, there is access to skilled labor force at a competitive price range that adds value to its credibility.

This engineering special economic zone provides an organic, eco-friendly and a sustainable industrial development. Other SEZ benefits and basic incentives are:-

* There is international standard landscaping with approximately 15,000 trees

* There are bicycles for intra-zone mobility

* A proper landscape with a huge amphitheatre visible and available from total campus

* Has rain water harvesting

* Provides a water treatment plant

* Provides a sewage treatment plant

* An existing small stream is being converted to a natural water body

In all its totality Special Economic Zones in India has helped to increase the international trade volume. Furthermore, a huge amount of foreign investment has been directed not only to export trade but also into infrastructure construction and commerce. There are foreign engineering companies that have been encouraged to set up their units in various regions and the export industry has grown. This apart innovative foreign technology had resulted in the inflow of foreign investment. All these had contributed to the development of the Indian economy.

Read Also On: Aerospace Testing, Engineering Services Company