Q.What is SEZ ? Explain their objectives.

A Special Economic Zone (SEZ) is a specially marked, duty-free area deemed to be foreign territory for the purpose of trade, duties and tariffs, created to boost exports. Its objectives are to promote exports, attract foreign and domestic investment, generate employment, bring in better technology and develop infrastructure. ## Meaning of SEZ A Special Economic Zone is a geographically demarcated region within a country that is given special economic laws more liberal than the country's general laws, and is treated as foreign territory for the purposes of trade operations, duties and tariffs. In India SEZs are governed by the Special Economic Zones Act, 2005. Units in an SEZ enjoy exemptions from customs and other duties, simplified procedures and various tax benefits so that they can produce and export competitively. ## Objectives of SEZ 1. Promotion of exports of goods and services and earning of foreign exchange. 2. Generation of additional economic activity and faster industrial growth. 3. Attracting domestic and foreign investment, including foreign direct investment. 4. Creation of employment opportunities on a large scale. 5. Development of infrastructure facilities such as roads, power, ports and communications. 6. Transfer of better technology and skills, and simplification of procedures through a single-window system. By offering a liberal, duty-free environment, SEZs encourage firms to set up export-oriented units, ther …