What are Special Economic Zones? Why have they been set up?

A special economic zone (SEZ) is an area in which business and trade laws are different from rest of the country. SEZs are located within a country's national borders, and their aims include: increased trade, increased investment, job creation and effective administration. To encourage businesses to set up in the zone, financial policies are introduced. These policies typically regard investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays, where upon establishing in a zone they are granted a period of lower taxation.

A special economic zone aims at :-
To attract foreign direct investment (FDI)
The companies which fall under the special economic zone are able to manufacture and trade goods at lower prices so that to make them globally more competitive

SEZs are special economic zones where world class facilities like water, electricity, roads and transport, recreation, education are available. They have been set up to promote foreign companies to invest in India.
Companies with production units in the SEZs do not have to pay taxes for the initial period of 5 years.

SEZs are special economic zones where world class facilities like water, electricity, roads and transport, recreation, education are available. They have been set up to promote foreign companies to invest in India.
Companies with production units in the SEZs do not have to pay taxes for the initial period of 5 years.

SEZs are special economic zones where world class facilities like water, electricity, roads and transport, recreation, education are available. They have been set up to promote foreign companies to invest in India.
Companies with production units in the SEZs do not have to pay taxes for the initial period of 5 years.