Considering the need to enhance foreign investment and promote exports from the country, the Government of India has introduced various types of special zones/units for the purpose. A special economic zone (SEZ) is a geographical region having some economic laws for its development.
The first special zone was set up in Spain in 1929 with an intention to increase exports by value addition to the raw materials available in the country. The concept of SEZ was introduced in China during the year 1979. Social economic zone is considered as geographical reason for its economic growth. The main object of the SEZ is to get more finance from the foreign as well as from the country. According to SEZ act 2005, a special economic zone can be established either jointly or severally by the central government, state government, on any other person involve in the manufacturing of goods. Even a foreign company can also wet up SEZ in India.
In developing country like India special economic zone are accepted as one of the chief economic instruments for achieving rapid industrialization through exports. It is high time that government should rework in SEZ policy to facilitate the development of large employment generating SEZs without hurting country's exchequers and other vulnerable section of the society.