DEVELOPING ECONOMIES AND SEZ'S (SPECIAL ECONOMIC
ZONES)
From the time of its inception in 1950's Special Economic
Zones (SEZs) have found a fundamental space within the economic
policies of numerous developing economies1 including
India. Based on the ingenuity of an Export-oriented marketing model
and an easing of trade restrictions, they have been instrumental in
attracting the coveted Foreign Direct Investments (FDI) and have
aided in the creation of infrastructure, employment and regional
development2.
Similarly, in India, an absence of world class infrastructure
and fiscal instability can be more than compensated for with the
SEZ policy which has been acting as an economic
stimulant3. The fundamental idea of the policy being
that the establishment of export production zones within the
country, working with operational flexibility and which are free
from all governmental trade restrictions and custom
duties4.
