India is one of the fortune countries having the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of worldclass infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000. The provisions of the Special Economic Zones (SEZ) Act, 2005 allow the competent authority to extend incentives and subsidies to SEZ developers which may be detrimental to the public interest. The paper mainly focuses on analyzing various issues involved in SEZs and an observation on how an SEZ benefits a common man is made. It also highlights various issues involved in the current policy framework relating to Special Economic Zones (SEZs) and its implementation, more specific to land acquisition aspects and the implications.
Special Economic Zones (SEZ), Export Processing Zone (EPZ), Foreign Investment Domestic Tariff Area (DTA)
