What is SEZ.. how is it useful for our country's economy..?

Answer 1

Special economic zone is a particular area inside a state which acts as foreign territory for tariff and trade operations. Govt. provides tax exemption (IT, Excise, customs, sales etc.), subsidised water and electricity etc.

SEZ can be sector specific or multi product sez. It helps in the development of infrastructure of the area around the SEZ, provides employment to ppl, makes the exports more viable. All this will helps the country's products to become mor competitive vis-a-vis providing all round development of region.

It should be noted that if 100 acres are alloted for SEZ, then only 30-35% of area is used for setting up plants. rest of the area is used to provide housing facilities, malls, multiplexes etc.
Also Tax exemption is for specific period say for 10 yrs or so.

Although u hv not asked but think where the land for SEZ will come from as land is a finite source. So, there are controversies regarding snatching of arable/cultivated land or buying land at very discounted artes from farmers or poor ppl and then selling it to corporates at exorbitant prices. There's much more to SEZ.

Grab today's copy of Economic times (if u r an Indian) and go to editorial page. there is interesting discussion over this issue.

Also, mamta also has some point in opposing the coming of TATAs plant. She is not 'absolutely' stupid (note the word absolutely :)

Answer 2

A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. Usually the goal is an increase in foreign investment. Ones of the earliest and the most famous Special Economic Zones were founded by the government of the People's Republic of China under Deng Xiaoping in the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has developed from a small village into a city with a population over 10 million within 20 years. The article Special Economic Zone of the People's Republic of China provides more information about the Special Economic Zones in China. Following the Chinese examples, Special Economic Zones have been established in several countries, including India, Iran, Jordan, Poland, Kazakhstan, the Philippines and Russia. North Korea has also attempted this to a degree, but failed. Currently, Puno, Peru has been slated to become a "Zona Ecomomica" by its president Alan Garcia. In the United States, SEZ are referred to as "Urban Enterprise Zones".

According to World Bank estimates, as of 2007 there are more than 3,000 projects taking place in SEZs in 120 countries worldwide.

Significance for India
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Considering the need to enhance foreign investment and promote exports from the country and realising the need that a level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally, The Government of India had in April 2000 announced the introduction of Special Economic Zones policy in the country, deemed to be foreign territory for the purposes of trade operations, duties and tariffs. As of 2007, more than 500 SEZs have been proposed, 220 of which have been created. This has raised the concern of the World Bank, which questions the sustainability of such a large number of SEZs. The Special Economic Zones in India closely follow the PRC model.

Answer 3

A Special Economic Zone (SEZ) is a geographical region that has economic laws different from a country's typical economic laws. Usually the goal is an increase in foreign investment. Special Economic Zones have been established in several countries, including the People's Republic of China, India, Jordan, Poland, Kazakhstan, the Philippines and Russia. North Korea has also attempted this to a degree.

here, there are no import/export taxes, and u have lots of concessions
it leads to loss of revenue for the govt.
but it generates a lot of employment... and the money from that would benefit the people: which is the same as money collected from taxes! plus, it raises the standard of living significantly

Answer 4

Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. In order words, SEZ is a geographical region that has economic laws different from a country's typical economic laws. Usually the goal is to increase foreign investments. SEZs have been established in several countries, including China, India, Jordan, Poland, Kazakhstan, Philippines and Russia. North Korea has also attempted this to a degree.
The Special Economic Zone (SEZ) policy in India first came into inception on April 1, 2000. The prime objective was to enhance foreign investment and provide an internationally competitive and hassle free environment for exports. The idea was to promote exports from the country and realising the need that level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally.

The advantages of SEZ in India are:
Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
100% Income Tax exemption on export income for SEZ units for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
External commercial borrowing by SEZ units upto US $ 500 million in a year without any maturity restriction through recognized banking channels.
Exemption from Central Sales Tax.
Exemption from Service Tax.
Single window clearance for Central and State level approvals.
Exemption from State sales tax and other levies as extended by the respective State Governments.




One of India's pioneer serviced office spaces providers is Stylus. They provide smaller units of office space with SEZ benefits called the Serviced SEZ Units.

Answer 5

SEZ's in america right now are very important to get foreign investors here because all the money seems to be put into china and our economy is suffering

Answer 6

This Site Might Help You.

RE:
What is SEZ.. how is it useful for our country's economy..?

Answer 7

What Is Special Economic Zone

Answer 8

Special Economic Zone. By his govt encourages industries for the development of country. Govt giving relief towards taxes such as excise, customes and sales tax for the raw materials procured / finished product manufactured by the industries subject to observe certain procedures for not misusing the facilities. All incoming / outgoing materials are monitored by the officials at entry point.

Answer 9

sez means special economic zones. it is useful in building up large industries and providing more employment oppurtunities to the people who are below poverty line.the merits of sez are pollution control, cost of land , manufacturing becomes very easier for the products which are nedded at short notice.it will help to increase in our economic development and it will improve the people standard of living who are below poverty line

Answer 10

A comparative of benefits of EOU and SEZ vis-a-vis DTA is provided in
http://www.indiataxfin.com/comparison-of-benefits-to-eou-sez-and-dta/