Expanding businesses – Special Economic Zones (SEZs) in India

  • Special Economic Zones (SEZs) in India

A Special Economic Zone (“SEZ”) primarily refers to a quantified, defined and duty-less geographical region that has various economic laws from the country where it is situated.
 


Special Economic Zones (SEZs) in India -  Largely considered a business development tool, an SEZ plays a pivotal role not only in strengthening the country’s economic pillar but also in attracting foreign investment and technology. A Special Economic Zone (“SEZ”) primarily refers to a quantified, defined and duty-less geographical region that has various economic laws from the country where it is situated. In some regions, such a region is even perceived as a deemed foreign territory.

In the prevailing global economic ecosystem, the developing countries have started realizing the importance of enabling global trade for the lasting growth of the economy and the substantial contribution to the GDP of the nation. On its path to becoming a $5 trillion economy by 2025, the Government of India (GoI) has also, since the last 10 years, embraced a multi-faceted method to encourage foreign investment in India. The Government has moved further with next-gen reforms and has made a number of policy changes to realize this goal. However, the concept of SEZ was introduced by the GoI in the year 2005.

As of 2017, there were 221 SEZs in the country, with next 194 sanctioned for 2018.- Santa Cruz (Maharashtra), Cochin (Kerala), Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal) and Noida (Uttar Pradesh) in India.

 

There are different types of benefits of setting up a manufacturing system in an Indian SEZ including:

  • Duty free import and domestic procurement of products for the expansion, operation, and. upkeep of your company;
  • 100% income tax immunity on export income for first 5 years, 50 percent for five years afterward, and 50 percent of the export profit plowed in the business for the next 5 years (However, these benefits will be inhibited from April 1, 2020, as per the Sunset Clause, but many experts suppose it to be protracted following latest tax cuts);
  • Exemption from the Goods and Services Tax (GST) and levies forced by the state government (supplies to SEZs are zero-rated under the IGST Act, 2017, meaning they are not taxed);
  • Single window permissions for all state and federal government endorsements.

     

# Types of SEZs in India

  • Multi sector SEZ (Requires a minimum of 1000 hectares of land);
  • Sector specific SEZ (Requires a minimum of 100 hectares);
  • Free Trade and Warehousing Zone (FTWZ) (Requires a minimum of 40 hectares); and,
  • IT/ITeS/handicrafts/bio-technology/non-conventional energy/gems and jewelry SEZ (Requires a minimum of 10 hectares).

     

# More details about SEZs in India

  • The Delhi National Capital Region (NCR) presently has 14 SEZs, which are principally situated in satellite regions like Gurugram (Haryana) and Noida.
  • The Mumbai region boasts of seven SEZs across Mumbai and adjoining towns such as Navi Mumbai, and Thane.
  • The Bengaluru region has 18 SEZs, which are primarily located on the city’s peripheries.

     

# Who can apply?

  • Companies, co-operative societies, people, and partnership firms can choose to file an application, by filling the Form-A that is presently available on the Department of Commerce’s Portal.
     
Search Hotels Booking.com
  • We Price Match
  • FREE cancellation on most rooms!








Ads