subject: Sez Benefits: Government Initiatives For A Globalized Business Environment [print this page] The global business leaders with diversified business across wide geographical locations understand the gaps present between economics, infrastructure, regulatory requirements and availability of skilled manpower. In attempt to fill up the gaps for the smaller and forward looking organizations, and provide opportunities on a global level, governments have given the go-ahead signals for the development of special economic zones.
Wikipedia defines Special Economic Zone (SEZ) as a geographical region with economic and other laws which are more free-market-oriented than a country's typical or national laws. This includes free trade zones, export processing zones, Industrial parks, Industrial estates, free ports, urban enterprises zone and the likes. The nationwide laws tend to get suspended inside a SEZ. The concept of SEZ was developed to increase direct foreign investment in developing countries in the form of international business or a multinational corporation.
India was one of the first countries of Asian origin to have recognized the effectiveness of role of export processing zones for promotion of export markets in India. After the first export processing zone which came up in Kandla in 1965, the government of India announced SEZ policies in 2000 to stabilize the fiscal regime and channelize foreign investments into the country. The special economic zones in India not only provided a global platform for the local manufacturers but also provided enough facilities to set up engineering and manufacturing units along with other firms and triggered off export revenues for the country.
The key SEZ benefits for enterprises include a ten year tax holiday for the initial 20 year period, ability to streamline procedures and certify labor acts, freedom to develop the zone infrastructure without any ownership restrictions, besides enjoying income tax holiday on business income. Further, enterprises that have set up units in SEZs have the benefit of efficient and speedy approvals, customs clearances and resolutions of disputes if any. These zones also enjoy the freedom to develop the area into an established township complete with markets, residential areas, playgrounds, clubs and recreational centers.
There are a number of special economic zones established in India. The Indian SEZ is developed jointly by the government and private sectors and provides equal opportunities to both domestic and global players. Regarding land allocation for SEZs governments have no limitations in sector specific SEZs. The SEZ which houses the development centre for aerospace manufacturing and aerospace testing is spread across 300 acres.
The aerospace engineering SEZ developed by a leading provider of diversified engineering and manufacturing services not only helps the aerospace industry to alleviate product development costs, shorten lead times, but also maximizes availability of engineering resources. Further, these also help other industries such as consumer electronics, healthcare, industrial products, transportation verticals, marine, nuclear, oil & gas, and power generation. With SEZ benefits such as 100% of FDI allowed for all endowments, this special economic zone is all set to develop supply chain ecosystem for aerospace manufacturing.
by: Gladeyas
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