Q.Write a short note on: Special Economic Zones

A Special Economic Zone (SEZ) is a duty-free enclave treated as foreign territory for trade and tariff purposes, created to promote exports, attract investment, generate employment and build world-class infrastructure, and was given legal shape by the SEZ Act of 2005.

Special Economic Zones are studied as part of industrial and trade policy in the post-reform period in the AP Intermediate 2nd-year Economics course (aligned with the NCERT/CBSE commerce curriculum).

Meaning and features. A Special Economic Zone is a geographical region within a country that is given special economic laws more liberal than those applying to the rest of the country. It is treated as foreign territory for the purposes of trade operations, duties and tariffs, so that goods moving into and out of the zone are exempt from many taxes and customs duties. SEZs are set up to boost exports, attract domestic and foreign investment, create employment and develop modern infrastructure. Units in SEZs enjoy tax concessions, simplified procedures …