Q: Do you consider SEZ through industrialization will generate Social Benefits?
An:
Special Economic Zone (SEZ)
An SEZ, or a Special Economic Zone, is like a foreign territory within a country, a geographical region with different economic laws than a country’s typical economic laws, with the main goal of attracting foreign investment. In economic terms, SEZ is specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties & tariffs An SEZ is governed by a special set of rules to facilitate foreign direct investment for export-oriented production. SEZs are free trade zones and customs authorities do not supervise them. These zones are typically marked by minimum bureaucracy, best infrastructure, generous tax holidays, unlimited duty free imports of raw, intermediate and final goods as well as capital goods. Basically, governments look to SEZs to overcome difficulties in bureaucracy and fiscal measures.
Features of Special Economic Zones:
The main features of SEZ are following:
i. SEZ units would be able to import capital goods and raw material duty free.
ii. SEZ units shall be deemed to be foreign territory for the purpose of trade operations and tariffs. Goods moving to the SEZ areas would be treated as deemed exports.
iii. SEZ units would be able to procure products from the Domestic Tariff Area (DTA) without paying the terminal duty.
iv. SEZ units would be required to export their entire output. Any sale by these units to the DTA would be treated as imports into India subject to all duties/taxes on similar imported products.
Objectives:
Setting up of SEZ is, in fact, a part of the Government of India’s policy of prom ...