Historical background:
The concept of special economic zones (SEZs) was suggested by the then commerce and industry minister Late Mr. Murasoli Maran while introducing third revision to Exim Policy 1997-2002. The SEZs are in addition to EPZs and FTZs operating in India. A scheme for setting up SEZs in the country to promote exports was announced by the government in the Exim Policy announced on 31 March, 2000. The SEZs intend to provide an internationally competitive and hassle-free environment for exports and are expected to give a further boost to the country’s exports.
From 1965 India experimented with the concept of export processing zones starting with the one at Kandla in Gujarat. However, EPZs did not come up to expectations. So in 2000, the new Exim policy allowed for SEZs to be set up in the private and joint sectors. Eight existing EPZs were converted into SEZs. Since then, more than a dozen others have been established. As of now 267 SEZs have obtained either formal or in-principle approval.
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