ForumIAS LATEST
- 24 May |UPSC Prelims 2026 Paper Solved LIVE | GS Paper Detailed Discussion | ForumIAS Click Here →
- 17 May | ABC of Indian Sociology Series | 'H' = HAROLD COULD | Sociology Optional Simplified Click Here →
- 15 May | If You Are Giving Prelims 2026, Watch This Before Entering the Exam Hall Click Here to listen to Ayush Sir's advice →
Fiscal sops for SEZs must be linked to investments, jobs: Panel
News
- The committee headed by Baba Kalyani has proposed reincarnation of SEZs in India as ‘Employment and Economic Enclaves (3Es).
Important Facts:
- The committee has proposed overhaul of the SEZ policy by shifting fiscal incentives from exports to investments made and employment generated.
Note
- A special economic zone (SEZ) is an area in which business and trade laws are different from the rest of the country. For example- taxation benefits to units in SEZs.
- SEZs are located within a country’s national borders.
- SEZ aims include: increased trade, increased investment, job creation and effective administration,etc.
- The committee emphasized on development of last-mile and first-mile connectivity infrastructure.
- Supply of power directly to units in SEZ from Independent Power Producer (IPPs) at competitive prices.
- Integrated MSMEs with the 3E’s and giving additional incentives to zones focusing on priority industries.
- Tax benefits to be retained for the services sector.
- The committee suggested that flexibility should be considered to enable 3E units to seamlessly support businesses outside the zone.
Objective of the committee
- To make the SEZ policy WTO-compatible
- Encouraging manufacturing and the services sector
- Maximizing utilization of vacant land in SEZs
