Strengthening Special Economic Zones (SEZs) for Global Competitiveness & Growth

Abstract

Special Economic Zones in India: how SEZs aim to drive industrial growth and jobs. The paper aims to promote export-led growth by attracting investments, creating employment opportunities, boost exports, attract investment and build infrastructure. Special economic zones are duty-free enclaves deemed to be foreign territory for the purpose of trade operations and duties and tariffs. SEZs have functioned as the undisputed engine of the Indian tech boom, contributing to over 50% of India's total IT and software exports. This paper is geographically demarcated enclaves where the state suspends or modifies the standard regulatory, fiscal, and trade regime to attract investment. The paper highlights in order to promote economic growth by utilizing tax incentives to draw foreign investment.