Investing in the Indian Special Economic Zones: A Background Paper

This paper describes the evolution and salient features of the Special Economic Zones (SEZ) Act of 2005. It notes that substantial benefits accrue to these zones in the form of tax concessions, customs facilitation and policy stability. The paper throws light on the definitional issues and regulatory concerns of the developers and commercial units operating within a SEZ. Further, the paper analyzes the state-level factors that could affect the general competitive potential of a SEZ in five Indian states, which look attractive from the point of view of Singapore investment.

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