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Special Economic Zones (SEZ) are growth engines that can boost manufacturing, augment exports and generate employment. The private sector has been actively associated with the development of SEZs. The SEZs require special fiscal and regulatory regime in order to impart a hassle free operational regime encompassing the state of the art infrastructure and support services. The proposed legislation on SEZs to be enacted in the near future would cover the concepts of the developer and co- developer , incorporate the provision of virtual SEZs, have fiscal concessions under the Income Tax and Customs Act, provide for Offshore Banking Units (OBUs) etc .
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Can you give a link to the modalities of proposed SEZs.
Communists have squandered an oppurtunity by not allowing flexible labour laws within SEZs. Also in my opinion, there can be two types of SEZs: 1) Trade Specific and 2) Location Specific.
Trade Specific SEZs should help in developing a thriving industry further to compete in a world class competetion. For example textile industry is the largest industry in India in terms of exports. But India's situation w.r.t. China in textile exports is pathetic. To make the industry compete with the world, places like Tirupur can have textile specific SEZs.
Location or Region Specific SEZs' primary goal should be to develop a region which has the potential but is crying for investment. Tier 2 cities in states (some state capitals also) are good choices for setting up SEZs. I am not sure if these can develop very backward regions.
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