File Name: special economic zone advantages and disadvantages .zip
With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones SEZs Policy was announced in April This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations.
SEZs in India functioned from 1. To instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through the establishment of SEZs, a comprehensive draft SEZ Bill prepared after extensive discussions with the stakeholders.
A number of meetings were held in various parts of the country both by the Minister for Commerce and Industry as well as senior officials for this purpose. Around suggestions were received on the draft rules. After extensive consultations, the SEZ Act, , supported by SEZ Rules, came into effect on 10th February, , providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments.
The main objectives of the SEZ Act are:. It is expected that this will trigger a large flow of foreign and domestic investment in SEZs, in infrastructure and productive capacity, leading to generation of additional economic activity and creation of employment opportunities. All decisions of the Board of approvals are with consensus.
Every SEZ is divided into a processing area where alone the SEZ units would come up and the non-processing area where the supporting infrastructure is to be created. The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval. The applicant also has the option to submit the proposal directly to the Board of Approval.
All the decisions are taken in the Board of Approval by consensus. The Board of Approval has 19 Members. Its constitution is as follows:. The functioning of the SEZs is governed by a three tier administrative set up.
Each Zone is headed by a Development Commissioner, who is ex-officio chairperson of the Approval Committee. All post approval clearances including grant of importer-exporter code number, change in the name of the company or implementing agency, broad banding diversification, etc. The performance of the SEZ units are periodically monitored by the Approval Committee and units are liable for penal action under the provision of Foreign Trade Development and Regulation Act, in case of violation of the conditions of the approval.
Home About Us Introduction. The main objectives of the SEZ Act are: generation of additional economic activity promotion of exports of goods and services promotion of investment from domestic and foreign sources creation of employment opportunities development of infrastructure facilities It is expected that this will trigger a large flow of foreign and domestic investment in SEZs, in infrastructure and productive capacity, leading to generation of additional economic activity and creation of employment opportunities.
The SEZ Rules 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 Approval mechanism and Administrative set up of SEZs Approval mechanism The developer submits the proposal for establishment of SEZ to the concerned State Government.
Its constitution is as follows: List of Members S. Last Updated Copyright Special Economic Zones in India. All Rights Reserved.
SEZ is an enclave area that is deemed to be a territory outside the customs territory of India for its authorised operations. The private sector has been actively associated with the development of SEZs. The SEZs require special fiscal and regulatory regime in order to impart a hassle-free operational regime encompassing the state-of-the-art infrastructure and support services. The presentation to Prabhu and Chaudhary listed the challenges faced by the SEZs and the possible solutions for them. Lack of flexibility to utilise land in SEZs for different sectors. Allowing flexibility of land use and removing sector-specific constraints. The approval is granted only after the concerned state government recommends the setting up of the SEZ.
Throughout the history of mankind, different mechanisms have been adopted to facilitate trading, including the introduction of Free Trade Zones. While free zones today are quite different from those of the past, it is not a new concept. Dating as far back as the Western civilizations, it existed in the Phoenician city of Tyre and during BC in the Greek Island of Delos, which consequently became one of the wealthiest islands in the world for nearly a century [i]. Ireland is of particular importance, as the first modern industrial free zone was established in Shannon, Ireland, in The Network Free Trade Zone came into existence through the law enacted viz.
SEZ is an enclave area that is deemed to be a territory outside the customs territory of India for its authorised operations. The private sector has been actively associated with the development of SEZs. The SEZs require special fiscal and regulatory regime in order to impart a hassle-free operational regime encompassing the state-of-the-art infrastructure and support services.
In pursuit of development, governments of developing countries have adopted different industrialisation strategies over the years. One of such approach to industrialisation is export —oriented manufacturing and the common policy instrument adopted to stimulate commercial export has been the establishment of free trade zones. This paper tries to find out the possible benefits and disadvantages associated with the creation of free trade zones as a strategy for industrialisation. The first part tries to explain what constitutes free trade zone by various authorities on the subject, the types and origin of free trade zones. The second part identifies the various posits on the impact of free trade zone.
Introduction A SEZ unit which has been set up for carrying on manufacturing, trading or service activity has both advantages as well as disadvantages. SEZ advantages are quite far more as compared to its disadvantages which are almost negligible. Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc.
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Five other special economic zones have since been established. In , it was expanded to include the rest of the city, substantially increasing the geographical size of the SEZ. Before Shenzhen became a special economic zone in , it existed as a small city containing only , residents and less than 30, workers.
Advantages and Disadvantages of SEZ. · 15 year corporate tax holiday on export profit – % for initial 5 years, 50% for the next 5 years and up to 50% for the.Audric D. 29.05.2021 at 15:55
Keywords: Special economic zones, locational advantages, SEZ high-quality infrastructure that overcomes the cost disadvantages of being situated far from.Tairanlamo1955 02.06.2021 at 11:52
Table 2: Relative Advantages and Disadvantages of Different Types of Fiscal Incentives Table 3: Fact Sheet on Special Economic Zones (As on July.Zelmira O. 04.06.2021 at 10:02
Choose your reason below and click on the Report button.Vivienne D. 04.06.2021 at 17:13
15 Direct Employment Impact of Special Economic Zones 34 packages to offset other disadvantages (such as poor location or insufficient advantages are even more important with the advent of modern production and.