Special Economic Zones in India a Boon or Bane

Abstract

Special Economic Zones are considered as Special economic institutions are functioning within the territory of India treated as foreign territory in the context of custom and excise duties. This concept is to facilitate exports through special tax concessions to the industries operating within the Special Economic Zones on the
competitive basis. Special Economic geographic zones designated for economic development towards boosting Foreign Direct Investment in the local territory which are supported by the policies and incentives offered by the State. The existing Export processing zones have been converted into Special Economic Zones. The concept was first introduced in the EXIM policy 2000with a view to create a healthy environment to achieve rapid growth in export and to provide a competitive and hassle free environment. The EXIM policy 2000 has been  implemented by an adhoc basis (amendments) in different legislations and through the executive order. This has put several obstacles in the way of its success.