A study of Indian SEZ’s-effectiveness and issues

Abstract

Export Processing Zones (EPZs)/Free Trade Zones came into existence during the “Import Substitution Industrialisation” (ISI) regime of the 1960s. India was the first among the developing countries to dedicate “special enclaves” to promote free trade and exports. In lieu of this, the first Free Trade Zone was established in Kandla in 1965. It came into existence after 5 years of the Government taking a decision in this regard. Subsequently, the second Export Processing Zone was setup in Bombay known as the Santacruz EPZ (SEEPZ) in 1975 to promote exports in the electronics sector. The Export Processing Zones were aimed at boosting exports and drawing in Foreign Currency. The EPZs were meant to provide modern and efficient infrastructure, tax incentives & holidays and less red-tape and bureaucracy for smoother execution of projects.