Special economic zones (SEZs) are designated areas of a country with specific economic regulations that are more lenient than the laws and policies governing the rest of the country. SEZs are usually set up by countries to attract foreign investment, technology transfer, export promotion, and employment generation. The concept of SEZ originated in China during the late 1970s as part of its open-door policy when Deng Xiaoping introduced Special Economic Zones in Shenzhen, Zhuhai, Shantou and Xiamen. Since then, many countries have adopted different models of special economic zones to stimulate economic growth and attract foreign direct investments (FDI).
The idea behind the special economic zones is to create an area within a particular nation where business would be free from some government policies or regulations which inhibit business operations elsewhere in that country. Regulations relating to labor laws, environmental standards or property ownership might be less restrictive in these areas than elsewhere for example – allowing businesses to take advantage of cheaper labor costs or greater access to resources. The ultimate goal is generally job creation and improved living standards for citizens through increased trade opportunities.
India launched its first SEZ in 1965 at Kandla port followed by another one at Santa Cruz airport near Mumbai; however they were not very successful due to lack of proper planning and coordination between government authorities involved .By 2005 India had only 4 operational SEZs but this number rose sharply after 2006 when new export oriented industrial policy was promulgated with incentives provided for setting up Special Economic Zones across the nation leading to exponential rise in their numbers ranging from around 200 operational units by 2010-11 fiscal year . Under this new policy states were given autonomy over granting approvals for setting up SEZs which further fueled their proliferation over time .Currently India has about 509 approved SEZ units ,including IT/ITeS(information technology related services), EOU’s (export oriented Units) etc out which 304 active ones providing jobs directly as well as indirectly employing 8 lakh people while contributing INR 1 lac crore rupees annually towards our GDP(gross domestic product).
The success story doesn’t end here some major reforms taken under Narendra Modi led BJP government such as introduction of single window clearance system ,Make In India campaign ,launching Digital India mission aiming at transforming our nation into digital superpower also proved beneficial towards achieving desired goals regarding special Economic Zone development . These steps have made it much easier for companies dealing with them thus helping them operate without any issues like delays , paperwork etc which ultimately resulted in positive results being achieved especially related exports generated from these areas rising exponentially despite turbulent times caused due Covid 19 pandemic situation across globe .
In conclusion we can say that Special Economic Zones play very important role today not only In terms Of increasing exports but also providing additional employment opportunities apart from generating revenues & taxes thereby helping governments achieve their goals regarding sustainable development & poverty alleviation . They remain useful instrument available With governments To promote Industrialization & Foreign Direct Investment FDI flows Into Nation’s economy enhancing overall productivity & efficiency on global scale
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