What are SEZ's

Special Economic Zone (SEZ) is a specifically delineated duty free enclave to promote trade and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.


Government of India Introduced a policy on 1.4.2000 for setting up of Special Economic Zones in the country with a view to provide an internationally competitive and hassle free environment for exports. This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations. SEZs in India functioned from 1.11.2000 to 09.02.2006 under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes.


Government of India Introduced a policy on 1.4.2000 for setting up of Special Economic Zones in the country with a view to provide an internationally competitive and hassle free environment for exports. This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations. SEZs in India functioned from 1.11.2000 to 09.02.2006 under the provisions of the Foreign Trade Policy and fiscal incentives were made effective through the provisions of relevant statutes.


Units may be set up in SEZ for manufacture of goods and rendering of services. All the import/export operations of the SEZ units will be on self-certification basis. The units in the Zone have to be a net foreign exchange earner but they shall not be subjected to any pre-determined value addition or minimum export performance requirements. Sales in the Domestic Tariff Area by SEZ units shall be subject to payment of full Custom Duty and import policy in force. Further Offshore banking units may be set up in the SEZs.


Constantly on the path to making the ambiance more conducive for investments and trade, Karnataka has been proactive in spearheading initiatives on SEZ front. The Government of Karnataka has been instrumental in driving growth through SEZ's at various locations across the State.

Department of Industries & Commerce
#49, Khanija Bhavan, South Wing,
Race Course Road, Bengaluru - 560001