The Central Government has taken steps towards major reforms in the Special Economic Zones i.e. SEZ policy. The government has constituted a 17-member committee to prepare the SEZ-2.0 policy. This committee will prepare a roadmap for a new policy to increase exports and attract investment in the country. It is believed that this can create new opportunities in the field of industry, export and employment. According to the government, this committee will prepare a concept paper, in which comprehensive reforms will be suggested for SEZ-2.0. Representatives of the Ministry of Commerce, Customs, NITI Aayog, Department for Promotion of Industry and Internal Trade and Central Board of Indirect Taxes and Customs have been included in the committee. The objective of the Committee is to bring the existing SEZ policy in line with the changing global trade and investment environment.
Which schemes will be considered in the SEZ-2.0 policy?
The committee will study several schemes related to promotion of exports. This includes schemes such as special economic zones, export oriented units, manufacturing and warehouse operations, advance authorization and export incentives for capital goods. Apart from this, provisions like duty free import authority will also be included in the policy and their harmony will be considered.
Why will the existing SEZ law be reviewed?
The mandate of the committee also includes review of the SEZ Act 2005. The aim is to see how effective this law is in the current global trade and investment environment. The committee will also examine whether there are any shortcomings in the existing policies that need to be addressed.
What will be the role of SEZ in increasing investment and employment?
The government wants to promote domestic and foreign investment in the country through SEZs. The committee will also assess how much the special economic zones are promoting manufacturing, services, technological upgradation and value addition. Along with this, their role in employment generation will also be studied, which will also include the opportunities available to the MSME sector.
What challenges are the industries facing?
The committee will also identify the problems faced by SEZ developers and companies. This includes customs, tax regime, regulatory processes, compliance burden and infrastructure challenges. Besides, the status of coordination between various government agencies will also be studied, so that concrete suggestions can be given for policy reforms.