Importance of SEZ in India
SEZ stands for Special Economic Zone which is one of the significant part of government’s policies in India. A special Economic zone is a geographical region where tax and tariff policies are more liberal than regular economic laws followed in rest of the country. SEZ is a trade capacity development tool, with an objective to promote rapid economic growth by using tax and business incentives to attract foreign investment and technology. Today, there are approximately 3,000 SEZs operating in 120 countries, which account for over US$ 600 billion in exports and about 50 million jobs. The basic idea behind this is to attract investment and foreign exchange, spur employment, increase the level of income of people and boost development of improved technologies and infrastructure.
The SEZ was first pioneered by China in order to drive growth in investment, job opportunities, technical knowledge and certain tax reforms. It contributed almost 20% to FDI (Foreign Direct Investment)enabling increased Public-private partnership and ultimately boosting economic growth. Later, the SEZ model was also successfully implemented in Poland and Philippines. It has contributed in almost 35 percent of the FDI inflows. It not only provides a platform where it attracts foreign companies looking for cheaper and efficient setup for their offshore business, but also allows local industries to improve their export through a proper channel and with the help of new foreign partners at competitive rates.
In order to undertake any kind of massive development program, the government requires funds in huge amount. So it aims at potential partners for assistance to carry out the programs. For setting up an SEZ in India, the government may tie up with a private partner interested in investing the area. The deal will prove to be a boon for both parties as the government will get the capital needed to establish the required infrastructure and also the expertise while on the other hand the private party will have the right to market and use SEZ’s with relaxed tax laws, thereby increasing its revenue generating capacity and also carrying out the economic growth of the company in a more efficient way with better tax policies. With relaxed import tariffs, SEZs help import dependent and export driven industries to flourish by helping them develop manufactured goods at competitive prices.
SEZs also create immense job opportunities. It provides a lot of indirect employment in terms of labor. Then, after that it also provides employment in relevant industries operating in SEZs in India. It also contributes to improve country's foreign export. The increased export from the country brings in more revenue for the country, lifting the economic growth and balancing it.
Keystone SEZ is one of the upcoming special economic zones in India having the best facilities to support research and innovation driven companies. It is a unique research cluster which allows a company to undertake Research, Development and Manufacturing at a single location for Indian and International market.
The SEZ was first pioneered by China in order to drive growth in investment, job opportunities, technical knowledge and certain tax reforms. It contributed almost 20% to FDI (Foreign Direct Investment)enabling increased Public-private partnership and ultimately boosting economic growth. Later, the SEZ model was also successfully implemented in Poland and Philippines. It has contributed in almost 35 percent of the FDI inflows. It not only provides a platform where it attracts foreign companies looking for cheaper and efficient setup for their offshore business, but also allows local industries to improve their export through a proper channel and with the help of new foreign partners at competitive rates.
In order to undertake any kind of massive development program, the government requires funds in huge amount. So it aims at potential partners for assistance to carry out the programs. For setting up an SEZ in India, the government may tie up with a private partner interested in investing the area. The deal will prove to be a boon for both parties as the government will get the capital needed to establish the required infrastructure and also the expertise while on the other hand the private party will have the right to market and use SEZ’s with relaxed tax laws, thereby increasing its revenue generating capacity and also carrying out the economic growth of the company in a more efficient way with better tax policies. With relaxed import tariffs, SEZs help import dependent and export driven industries to flourish by helping them develop manufactured goods at competitive prices.
SEZs also create immense job opportunities. It provides a lot of indirect employment in terms of labor. Then, after that it also provides employment in relevant industries operating in SEZs in India. It also contributes to improve country's foreign export. The increased export from the country brings in more revenue for the country, lifting the economic growth and balancing it.
Keystone SEZ is one of the upcoming special economic zones in India having the best facilities to support research and innovation driven companies. It is a unique research cluster which allows a company to undertake Research, Development and Manufacturing at a single location for Indian and International market.
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