INTRODUCTION:
Special economic Zone is a geographical region that has economic laws that are more liberal than a
country’s typical economic law. An SEZ is a trade capacity development tool, with the goal 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. By offering privileged terms, SEZs attract
investment and foreign exchange, spur employment and boost the development of improved
technologies and infrastructure. Most developing countries in the world have recognized the
importance of facilitating international trade for the sustained growth of the economy and increased
contribution to the GDP of the nation. As part of its continuing commitment to liberalization, the
Government of India has also, since the last decade, adopted a multipronged approach to promote
foreign investment in India. The Government of India has pushed ahead with second-generation
reforms and has made several policy changes to achieve this objective.