Development of Special Economic Zones in India

Special Economic Zones or SEZ’s as they are more popularly known have been set up in numerous countries more as an experimenting ground for the execution of the principles of liberal market economy. They are taken as the instruments to improve the credibility and acceptability of the transformation policies, to attract foreign as well as domestic investments and for improving the economy.

SEZ’s in India aims to promote the value addition constituent in exports, to set up employment as well as mobilize the foreign exchange. Numerous companies in India, dealing in engineering services outsourcing have come forward to develop these areas. These companies deals in engineering and manufacturing needs in various domains that includes aerospace, automotive, engineering, as well as oil and gas engineering.

The first Aerospace Precision Engineering and Manufacturing SEZ is situated in Karnataka and the developments occupy a total area of 300 acres in Belgaum. It is well equipped and is prepared expand the Aerospace Precision Engineering and Manufacturing supply ecosystem. Some of the features and benefits are as follows:-

* Sustainable Support at the Special Economic Zone

* An Eco-friendly, Organic and Sustainable Industrial Environment

* Consulting facility

* Incubation facility

Companies specializing in engineering services outsourcing makes it easy for multiple investors to leverage from the benefits of the SEZ policy that the Indian Government has approved. The fiscal advantages are as follows:-

Income Tax advantages for units at the SEZ

* 100% SEZ tax exemption – in a block of 10 years out of 15 years

Investments in SEZ have the following Income Tax Benefits:-

* 100% Exemption – for first five years

* 50% Exemption – for next five years

In India, the government has been proactive in developing the SEZ’s. They have formulated specified policies, have occasionally reviewed then and also assured that sufficient facilities are offered to the developers as well as to the enterprises who are planning to set up their units in SEZ’s. This gradually has resulted in the huge corporate rush for SEZ development. Reports highlight that more than 234 enterprises have attained a formal approval, 162 companies received in-principle sanction, and approximately 100 enterprises have attained notifications for the same.

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