What is a Special Economic Zone (SEZ)?
As the name suggests, a Special Economic Zone (SEZ) is a specified area in a country which has different laws pertaining to business and trade, as compared to other parts of the country. SEZs are created in order to cater to rapid economic growth. The laws and regulations in such zones trigger Foreign Direct Investments (FDI), which further contributes to infrastructure development, which then leads to generation of additional economic activity and creation of employment opportunities. In the year 2005, the Government passed the SEZ Act, 2005 supported by SEZ Rules, 2006. SEZs provide easy access to global trading hubs that facilitates the flow of capital and movement of goods. These are critical for success of an SEZ. SEZ also offer well-developed areas of infrastructure with built up space, power, water supply, transport, housing etc. along with physical and social infrastructure facilities.
GIFT City Gandhinagar SEZ
Gujarat International Finance Tech-city (GIFT) SEZ is India’s first International Financial Services Centre (IFSC) under Special Economic Zone Act, 2005 (“SEZ Act 2005”). GIFT IFSC is a Multi Services Special Economic Zone with 105 hectors of land. GIFT is being designed as a global Financial and IT Services hub, which aims to be at par or better than the global financial centres at Tokyo, Shanghai, London amongst others. IFSC at GIFT SEZ has been developed to realise the vision of the India Government to emerge as a major economic power.
Advantages of GIFT City Gandhinagar SEZ
- Competitive cost of operations
- Favourable tax regime
- Single window clearance
- Increased FDI
- Boost in economic activity
- Employment generation
- Infrastructure development
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