Special Economic Zones (Sez)-A growth engine for Indian Economy

Special Economic Zones in India were established in an attempt to accelerate foreign investment and endorse exports from India and recognizing the need of a global platform to expose the domestic firms and producers to the competitive world market. The announcement of formulating a Special Economic Zones policy in India was made by the government in April 2000 and was anticipated to be an overseas province for trade purposes, commercial operations, duties and taxes. By the mid 2014 almost 200 SEZ are in operation and a 565 have already been formally approved for operations in the country. The drastic simplification of procedures and regulations makes Indian SEZs growing significantly, in their contribution to exports, and increasing Numbers of units are coming forward to invest in SEZs. With a proper system, policy framework and incentives in place, Indian SEZs have begun to play a crucial role in promoting foreign investment in the country. The paper analyses the performance indicators of SEZs and growth of exports from the zones and its contribution to the development of foreign trade from India.