Special Economic Zones in India

The status of Special Economic Zones in the country was recently discussed in the Lok Sabha. The Minister of Commerce and Industry gave a written reply about SEZs.

About SEZ

Special Economic Zones are areas which offer tax and other incentives to businesses to promote economic activity. The SEZ model was introduced to replace its less effective predecessor, Export Processing Zone model. The introduction was through the India’s Special Economic Zone Act of 2005.

SEZs in India

Currently, there are 354 SEZs that are notified in India. Of these, 240 SEZs are operational. Under the 2005 Special Economic Zone Act, over 400 proposals have been approved for the establishment of SEZs across India. Meanwhile, 101 cases of de-notification of SEZs have been approved due to poor market response, changes in fiscal incentive regimes, lack of demand, etc.

Baba Kalyani Committee

The Baba Kalyani Committee was constituted in 2018 to look into the SEZ policy of India. The government had tasked the committee with making the policy compatible with the WTO rules. It was set up by the Union Ministry of Commerce to maximize the utility of the SEZs.


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