Q.Explain the special economic zone (SEZ).

An SEZ is a duty-free, specially notified area treated as foreign territory for trade, offering tax/duty concessions to promote exports and investment.

Special Economic Zone (SEZ): An SEZ is a specially demarcated geographical area within a country that is treated as foreign (duty-free) territory for the purposes of trade operations, duties and tariffs. It is set up to promote exports and industrial development.

Main features / objectives:

• Units in an SEZ enjoy tax and duty concessions (exemption/relief from customs duties, income-tax benefits, etc.).
• Simplified rules and procedures and single-window clearance for setting up and running units.
• Well-developed infrastructure (roads, power, water, communication) is provided. …