Index Cards by Country INDIA
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Index cards by country INDIA FREE ZONES, SPECIAL ECONOMIC ZONES, FREE TRADE AND WAREHOUSING ZONES Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - India Oicial Terms for Free Zones Year of promulgation of the irst text Free zones, Special economic Zones, of law concerning the Free Zones Free Trade and Warehousing Zones 1965 Possibility to be established as Exact number of Free Zones Free Points 204 Yes TABLE OF CONTENTS General information ........................................................................................................................................................................5 List of operating Special Economic Zones (SESs) .................................................................................................................7 Contacts ............................................................................................................................................................................................ 74 Free Zones Web sites selection ................................................................................................................................................ 74 2 WFZO Index cards - India TURKMENISTAN TAJIKISTAN AFGHANISTAN CHINA Chandigarh PAKISTAN Punjab Haryana NEPAL IRAN BHUTAN Rajasthan Uttar Pradesh BANGLADESH Madhya Pradesh West Bengal Gujarat Chhattisgarh VIETNAM MYANMAR Odisha LAOS Maharashtra Telangana Goa Andhra THAILAND Karnataka Pradesh CAMBODIA Tamil Nadu Kerala SRI LANKA MALDIVES INDONESIA MALAYSIA FREE ZONES IN INDIA 200 km Number of Free zones 31 20 10 5 1 © Sébastien Piantoni - Conception: François Bost EA 2076 Habiter - University of Reims - 2017 Map Projection: WGS 1984 3 WFZO Index cards - India TURKMENISTAN TAJIKISTAN Jammu and Kashmir AFGHANISTAN Himachal Pradesh CHINA Chandigarh Punjab PAKISTAN Uttarakhand Haryana Delhi NEPAL IRAN BHUTAN Rajasthan Uttar Pradesh Bihar Meghalaya BANGLADESH Madhya Pradesh Jharkhand Mizoram West Bengal Gujarat Chhattisgarh VIETNAM MYANMAR Odisha Dadra and Nagar Haveli LAOS Maharashtra Telangana Goa Andhra THAILAND Karnataka Pradesh Pondichery CAMBODIA Tamil Nadu Andaman and Nicobar Kerala SRI LANKA MALDIVES INDONESIA MALAYSIA EXPORT ORIENTED UNITS (EOUS) BY STATES IN 2015 200 km Number of EOUs 446 300 100 50 10 1 © Sébastien Piantoni - Conception: François Bost EA 2076 Habiter - University of Reims - 2017 Map Projection: WGS 1984 4 WFZO Index cards - India GENERAL INFORMATION Oicial deinition of Free zones in India “Free zones in India are known as Special Economic Zones developed by the Central and State Government as well as by developers in private sector. Special Economic Zones (SEZs) in India are considered as deemed foreign territory for the trade operations, duties and taxes. The role of SEZs in India towards sustainable development goal is larger investment, substantial employment generation, state of the art infrastructure development and growth in industrial production, resulting in to growth in exports and thereby economic growth of the country”. Source: Association of EOUs and SEZs Oicial deinition of Export oriented units, EOUs (or free points). “The EOU Scheme introduced in early 1981 (chapter 6 of the Foreign trade policy), is complementary to the SEZ sche- me (erstwhile EPZ scheme). It adopts the same production regime but ofers a wider option in location with reference to factors like source of raw materials, port of export, hinterland facilities, availability of technological skills, existence of an industrial base, and the need for a large area of land for the project”. http://eouindia.gov.in/eou_scheme.htm “Under EOU Scheme, manufacturing or service sector units are allowed to be set up with the objective of exporting entire production of goods manufactured or services except limited sale in Domestic Tarif Area (DTA) as provided under the Foreign Trade Policy (FTP)”. https://www.google.fr/?gws_rd=ssl#q=+EOUs+deinition+India “An EOU can be set up by any entrepreneur for manufacturing of goods and also for rendering services. An EOU can be set up for repair, reconditioning, re-making and re-engineering also. Trading activity is not allowed in the EOU Scheme. EOU unit is required to achieve only positive Net Foreign Exchange (NFE) over a period of 5 years”. “Policy for EOU is given in Chapter-6 Foreign Trade Policy and Chapter 6 of Handbook of Procedure (Vol. – I) EOU can also be set up in the following sectors: Agriculture, Animal Husbandry, Aquaculture Floriculture, Horticulture, Pisciculture, Viticulture, Poultry or Sericulture”. “Export Oriented Units (EOUs) constitute a very important sector in the country’s Export Production scenario. They have become dominant players in our export strategy, and their share in the Country’s export performance is about 10%. The export growth rate of 30% compares very favorably with the National export growth rate”. Source: http://eouindia.gov.in/eou_settingup.htm In 2015, 1.970 EOUs were totalized in India. Number of free Special Economic Zones (SEZ), Free Trade and Warehousing Zones (FTWZ). zones Number of Free Free zones: zones 204 operational Free zones in 2017: 199 SEZs (346 SEZs notiied, 408 SEZs approved) Detail: • 7 Central Government SEZs set up prior to the enactment of SEZs Act, 2005, • 11 State Government /Private sector SEZs set up prior to the enactment of SEZs Act, 2005, • 3 operational Free Trade and Warehousing Zones (FTWZ), • 183 SEZs. Distribution of the free zones by States: Andhra Pradesh: 18; Chandigarh: 2; Chhattisga- rh: 1; Gujarat: 18; Haryana: 6; Karnataka: 24; Kerala: 14; Madhya Pradesh: 23; Maharashtra: 2; Odisha: 2; Punjab: 2; Rajasthan: 2; Tamil Nadu: 31; Telengana: 25; Uttar Pradesh: 8; West Bengal: 5. Export oriented units (EOUs): 1.970 operational Export oriented units (EOUs) were totalized in 2015. 5 WFZO Index cards - India Distribution of the EOUs by States: A & N Island: 3; Andhra Pradesh: 83; Bihar:1; Chan- digarh: 3; Chhattisgarh : 1; Dadra &Nagar Haveli: 20; Delhi: 17; Goa, Daman & Diu: 37; Gujarat: 196 ; Jharkhand: 1; Haryana: 65; Himachal Pradesh: 5; Jammu & Kashmir: 2; Karna- taka: 446; Kerala: 77; Madhya Pradesh: 8; Maharashtra: 224; Mizoram: 1; Orissa: 10; Pondi- cherry: 13; Punjab: 10; Rajasthan: 57; Tamil Nadu: 410; Telangana: 171; Uttar Pradesh: 57; Uttrakhand: 2; West Bengal: 55. N. of act. comp. 4.166 Companies in 2016 in Free Zones Main sectors of Logistics, warehousing, electronics hardware and software ITES, information technologies activity (IT), software, telecom, drugs, textile, wearing apparel & leather, footwear, chemicals, pe- troleum, coal, rubber, plastic, gems and jewelry, automotive, pharmaceuticals, apparel and fashion accessories, food processing, agro based food processing, biotechnology, building products, non-conventional (energy including solar photovoltaic energy and equipment / cell), manufacture and export of aluminum, multi-product, engineering services, hi-tech engineering products and related services, animation and gaming, heavy engineering, aerospace, etc. Total job num- 1,591 381 directs jobs (5 million indirect jobs) in March 2016 bers Distribution of India, Asia, United Sates, European Union, etc. investors Exports and 51,8 billions of US dollars in 2015-2016 sales For memory: 33,5 billions of US dollars in 2009-2010 Free zones 19, 8% of national exports in 2015-2016. contribution to the nat. eco. Corporate Tax The incentives and facilities ofered to the units in SEZs for attracting investments into the and Incentives SEZs, including foreign investment include: • Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units • 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for irst 5 years, 50% for next 5 years thereafter and 50% of the plou- ghed back export proit for next 5 years. • Exemption from minimum alternate tax under section 115JB of the Income Tax Act. • External commercial borrowing by SEZ unit’s up to US $ 500 million in a year without any maturity restriction through recognized banking channels. • Exemption from Central Sales Tax. • Exemption from Service Tax. • Single window clearance for Central and State level approvals. • Exemption from State sales tax and other levies as extended by the respective State Governments. The major incentives and facilities available to SEZ developers include: • Exemption from customs/excise duties for development of SEZs for authorized opera- tions approved by the BOA. • Income Tax exemption on income derived from the business of development of the SEZ in a block of 10 years in 15 years under Section 80-IAB of the Income Tax Act. • Exemption from minimum alternate tax under Section 115 JB of the Income Tax Act. • Exemption from dividend distribution tax under Section 115O of the Income Tax Act. • Exemption from Central Sales Tax (CST). • Exemption from Service Tax (Section 7, 26 and Second Schedule of the SEZ Act). EOUs incentives: • No license required for import. 6 WFZO Index cards - India • Exemption from Central Excise Duty in procurement of capital goods, raw-materials, consumables spares etc. from the domestic market. • Exemption from customs duty on import of capital goods, raw materials, consumables spares etc. • Reimbursement of Central Sales Tax (CST) paid on domestic purchases. • Supplies from DTA to EOUs treated as deemed exports. • Reimbursement of duty paid on furnace oil, procured from domestic