Special Economic Zone (SEZ):

• A Special Economic zone (SEZ) is an area in which business and trade laws are different from the rest of the country. It is created to increase trade, increase investment, job creation, provide tax benefits and for effective administration.
• In India, Special Economic Zone (SEZ) was implemented from 1st April 2000.
• The main objective of setting up SEZ in India was to attract foreign investment and to develop free environment for exports.
• SEZ is implemented to make Indian industrial sectors compete with world economy and hence to increase our exports.
• To attract foreign investors the government provide various tax benefits for people who set-up their industries in special economic zones.
• There are also some special economic zones which were developed from the model of special economic zones of China. These SEZs helped a lot to develop export oriented producing sector with foreign direct investment (FDI).
• Countries like China, India, Jordan, Poland, Philippines, Russia and North Korea have made good use of special economic zones.