SEZ POLICY REVAMPED TO MEET CHALLENGES FACED BY EXPORTERS
January 13, 2020
Commerce and Industry &
Railways Minister chaired a meeting 9th January 2020, in New Delhi to
review the remaining recommendations of the Baba Kalyani report on Special
Economic Zone (SEZ) policy of India.
Commerce and Industry
Minister examined the revamp of the SEZ policy with a view to meeting the
global challenges being faced by Indian exporters.
Discussions were also held to
find a way out for implementation of the remaining recommendations in
order to facilitate the ease of doing business in the present global
The Baba Kalyani led
committee was constituted by the Ministry of Commerce and Industry to
study the existing SEZ policy of India and had submitted its
recommendations in November 2018.
The objectives of the
To evaluate the SEZ policy
and make it WTO compatible
Suggest measures for
maximizing utilization of vacant land in SEZs
Suggest changes in the SEZ
policy based on international experience and merge the SEZ policy with
other Government schemes like coastal economic zones, Delhi-Mumbai
industrial corridor, national industrial manufacturing zones and food and
A special economic zone (SEZ)
is an area in which the business and trade laws are different from the
rest of the country.
SEZs are located within a
country’s national borders, and their aims include increased trade
balance, employment, increased investment, job creation and effective
To encourage businesses to
set up in the zone, financial policies are introduced.
These policies typically
encompass investing, taxation, trading, quotas, customs and labour
Additionally, companies may
be offered tax holidays, where upon establishing themselves in a zone,
they are granted a period of lower taxation.