Journal Press India^®

Author Details ( * ) denotes Corresponding author

India’s Export Processing Zone Scheme, launched in 1965, was the precursor to the present day SEZ (Special Economic Zones) Scheme. The SEZ Act was enacted in 2005 and made operational through SEZ Rules in February 2006. The  SEZ scheme provides an ecosystem  conducive to exports, wherein all clearances, starting from setting up of the unit, allocation of space, approval of raw material, capital goods, issuance of  letters of permission, monitoring of exports, permission for sale in DTA (Domestic Tariff Area) etc. are provided at one place. The services sector is an extremely important component of our foreign trade and there are large inflows of investment into SEZs (specifically for software exports) and this trend is likely to continue over the next decade. In the light of this, we examine whether intended benefits are being achieved through the SEZ scheme and the related tax incentives. We also look at the concerns in the area of SEZs.

Keywords

Special Economic Zones (SEZs), Tax incentives, Services sector, Export Processing Zones.

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