Special Economic Zones (SEZs) and the DESH Bill: Understanding the Reforms
What is an SEZ?
A Special Economic Zone (SEZ) is a designated area in a country that is subject to unique economic regulations that differ from other areas in the same country. SEZs are intended to attract foreign investment, boost exports, and create jobs by offering more liberal economic laws.
Why is reform needed?
Reforms are needed to adapt to the evolving economic landscape, address the changing needs of trade and industry, and ensure that SEZs remain competitive and efficient in the global market. This includes simplifying business operations, providing better infrastructure, and offering more incentives for businesses to operate within SEZs.
What is the DESH Bill?
The Development of Enterprise and Service Hubs (DESH) Bill is a legislative proposal in India aimed at revamping the existing SEZ Act. It seeks to expand the scope of economic activities allowed, enhance ease of doing business, and make SEZs more service-oriented to cater to the modern demands of trade and commerce, including the shift towards digital economies. The DESH Bill is designed to strengthen the SEZs by providing additional support and aligning them with international trade rules.
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