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Keywords - Special economic zones India Title - Impact of special economic zones on the society Description -The special economic zones are critical elements that are being set up across the country with an objective to enhance foreign exchange and poverty reduction in India. Special economic zones are regions with economic laws that are usually a step to increase foreign direct investment in the country. They are created as open market within an economy that will be under government regulatory control. These economic areas are located in the country's important centers and provide favorable conditions for developing activities by offering prepared industrial sites with physical or legal infrastructure, support service and tax incentives. Most of the developed nations are looking towards SEZ with expectation as it provides growth and development to achieve industrialization. This also helps to attract FDI and increase exports in a way that it will accelerate country economic growth. Besides providing state of art of infrastructure and easy access to well trained and skilled workforce, the SEZ also provides enterprises and developers with favorable and attractive framework of incentives since these special economic zones attract investment, generate export revenues and create manufacturing jobs as they are given income tax exemption Moreover, SEZ should be properly managed for rapid economic growth that leads to profitable and sustainable development. Liberal tax policies and regulations will attract foreign investment and other major industries. On the other hand, government should frame policies in a way that it should be able to attract FDI but at the same time should also ensure that special economic zones should not become the reason for reason. SEZ also creates an immense employment opportunities. They also create a lot of employment in terms of labor required. It also has potential in creating balanced economy growth in the country. It leads to tapping of local talent and also contributes for economic activity. There are number of advantages of Special economic zones from growth and development point of view. It contributes in increasing the income level of people, persuades competition and lowers labor cost. It plays an important role in magnetizing FDI and exchange earning. Also, FDI would make sure for a significant ownership in terms of adverse claim pay but it is only through FDI route that foreign stake holders could inculcate capital to come over adverse circumstances. It also helps to create a large number of employment opportunities in the market. Also, it acts as a good economic model for the policy makers to imitate. India around the globe has made a mark about the growing investment scenario, as India is attracting huge amount of foreign direct investment and is becoming a global manufacturing hub. Cheap manpower, special economic zones, various incentives and globalization of economy has brought a hand full of power and number of opportunities to India. 1


Impact of special economic zones on the society