Special Economic Zones in India - An Introduction

Abstract

This introductory article describes the salient features of the Indian embodiment of the model Chinese SEZ, how it evolved and what the various steps are in making an Indian SEZ function: from submitting an application and receiving a Letter of Approval for the establishment of an SEZ to getting the authorised operations and particular units sanctioned. The SEZs are tax-free enclaves for investors from India and abroad. As the Prime Minister of India, Dr. Manmohan Singh, said: “SEZs are here to stay”. The Indian government and the state governments are now finding that it is not enough to promulgate modern laws luring foreign direct investment into India, but that they also have to provide for the concerns and the livelihoods of those affected by the establishment of SEZs.