{"id":340552,"date":"2025-06-16T17:11:15","date_gmt":"2025-06-16T11:41:15","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=340552"},"modified":"2025-06-17T13:56:10","modified_gmt":"2025-06-17T08:26:10","slug":"special-economic-zones-sezs","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/special-economic-zones-sezs\/","title":{"rendered":"Special Economic Zones (SEZs)"},"content":{"rendered":"<p><strong>News:<\/strong> The government has relaxed key rules related to Special Economic Zones (SEZs) to encourage the domestic manufacture of semiconductors and electronics.<\/p>\n<h2>About Special Economic Zones (SEZs)<\/h2>\n<figure id=\"attachment_340555\" aria-describedby=\"caption-attachment-340555\" style=\"width: 529px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-340555\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Ministry-of-Commerce.png?resize=529%2C240&#038;ssl=1\" alt=\"\" width=\"529\" height=\"240\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Ministry-of-Commerce.png?resize=300%2C136&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Ministry-of-Commerce.png?resize=1024%2C463&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Ministry-of-Commerce.png?resize=768%2C347&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Ministry-of-Commerce.png?w=1155&amp;ssl=1 1155w\" sizes=\"auto, (max-width: 529px) 100vw, 529px\" \/><figcaption id=\"caption-attachment-340555\" class=\"wp-caption-text\">Source &#8211; Ministry of Commerce<\/figcaption><\/figure>\n<ul>\n<li>A special economic zone is a <strong>geographical area<\/strong> in which the <strong>trade and tax laws are relaxed<\/strong> and <strong>different from that in the rest of the country<\/strong> so as to be more <strong>conducive to industries<\/strong>.<\/li>\n<li><strong>Aim:<\/strong> The aim of a SEZ is to <strong>increase investment (FDI), exports and employment<\/strong>.<\/li>\n<li>India had setup the <strong>first SEZ in Asia<\/strong> in <strong>1965 at Kandla<\/strong> (based on <strong>Export Processing Zone (EPZ)<\/strong> model).<\/li>\n<li><strong>SEZ policy:<\/strong> The SEZ policy was announced by the government in <strong>2000<\/strong> which was strengthened through <strong>SEZ Act 2005<\/strong> which was passed by Parliament in May, 2005 which came into effect on 10th February, <strong>2006<\/strong>.<\/li>\n<li><strong>SEZ Rules<\/strong>: The <strong>SEZ Rules<\/strong> provide for <strong>different minimum land requirement<\/strong> for different <strong>class of SEZs.<\/strong>\n<ul>\n<li>Every <strong>SEZ is divided into a processing area<\/strong> where alone the SEZ units would come up and the <strong>non-processing area<\/strong> where the <strong>supporting infrastructure<\/strong> is to be created.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Recent changes in the SEZ Rules<\/h2>\n<ul>\n<li>The <strong>Ministry of Commerce and Industry<\/strong> has notified several <strong>modifications to the Special Economic Zones (SEZ) Rules, 2006<\/strong> to enhance the <strong>domestic manufacture of semiconductors<\/strong>.<\/li>\n<li><strong>Rule 5<\/strong> &#8211; <strong>Size of the SEZ<\/strong>: The minimum contiguous land area required for the manufacture of semiconductors or electronic components has been reduced to 10 hectares from 50 hectares earlier.<\/li>\n<li><strong>Rule 7:<\/strong> It now <strong>allows the Board of Approval for SEZs<\/strong> to <strong>relax the condition<\/strong> that had required SEZ land to be <strong>\u201cencumbrance-free\u201d.<\/strong>\n<ul>\n<li>Land is deemed to be <strong>encumbrance-free<\/strong> if it <strong>does not have any legal claims, liens, or charges against it<\/strong>, and when <strong>clear title of ownership<\/strong> and <strong>transfer<\/strong> can be established.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Rule 18:<\/strong> It now allows SEZ units in semiconductor and electronics component manufacturing <strong>to supply domestically,<\/strong> after paying the applicable duties.\n<ul>\n<li>Conventionally, SEZs are exclusively export-oriented.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: The government has relaxed key rules related to Special Economic Zones (SEZs) to encourage the domestic manufacture of semiconductors and electronics. About Special Economic Zones (SEZs) A special economic zone is a geographical area in which the trade and tax laws are relaxed and different from that in the rest of the country so&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/special-economic-zones-sezs\/\">Continue reading <span class=\"screen-reader-text\">Special Economic Zones (SEZs)<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":340555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-340552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/06\/Source-Ministry-of-Commerce.png?fit=1155%2C522&ssl=1","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/340552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=340552"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/340552\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/340555"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=340552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=340552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=340552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}