Facilitating international trade for the sustained growth of the economy and increased contribution to the GDP of the nation is need of hours for developing countries. A Special Economic Zone (“SEZ”) is a specified, delineated and duty-free geographical region that has different economic laws from those of the country in which it is situated. An SEZ is a trade capacity development tool, with the goal to promote rapid economic growth by using tax and business incentives to attract foreign investment and technology. Government of India is providing several incentives and infrastructural facilities to manufacturing sector and services sector to boots foreign trade and encourage economic activities in domestic market. Successful SEZs create new jobs for citizens, provide laboratories for governments to run controlled trade policy experiments, attract FDI, strengthen industries, and help countries avoid potentially defective domestic laws and institutions that act as a barrier to growth. This paper is about contribution of SEZ in the economics growth and development of the Economy.
International trade, Special Economic Zone, Foreign Investment, Incentives
