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Tuesday, 13 May 2014

Explain the recent trends in export promotion zones in india



EPZ and Export Promotion go together with the EPZs being set up in India to promote export in the country. The Export Promotion and EPZ in India have given a major boost to the Indian economy and thus have helped the country to grow and prosper.

Export Processing Zones in India are specified areas in the country where quotas and tariffs are eliminated in the hope of attracting foreign investments and new business. EPZs in India can also be defined as manufacturing centers, which are labor intensive and where goods are imported, and from where finished products are exported. The main objectives behind the setting up of EPZs in India are to encourage export and foreign export earnings. Thus it can be said that promotion of export is the aim of the EPZs in India. The Indian government has encouraged the setting up of EPZs in the country since the 1960s.
The government of India in an attempt to promote export from EPZs in the country has tried to provide the zones with an internationally competitive environment. The various incentives given by the government of India to the EPZs in the country in order to encourage export are an efficient and modern infrastructure that is provided to the units within the EPZs. This helps the units to manufacture goods that are of world-class standards and which in turn are accepted in the international markets. Further the various incentives provided by the Indian government to the EPZs in the country in order to promote export are that the units inside the EPZs are given several fiscal and non-fiscal concessions. This helps the units to manufacture quality goods at low costs.

EPZ and Export Promotion both got a major boost due to the various incentives that has been provided by the government of India. The exports from EPZs in India increased from ` 1 million in 1966 to more than ` 97727 million in 2002. The net foreign exchange earnings from the EPZs in India increased from ` 0.16 million in 1966 to over ` 43195 million in 2002. This shows that the amount of export from the EPZs in India has registered a very significant growth. The various advantages of export promotion in the EPZs in India are that the increase in the amount of export created a lot of employment opportunities for the people in the country. Further the various advantages of export promotion in the EPZs in India are that the growth in the amount of export resulted in the country earning foreign exchange in huge amounts. This gave a major boost to the economy of the country.

The various Export Processing Zones in India are:
  • Noida Export Processing Zone (NEPZ), Noida, Uttar Pradesh
  • Visakhapatnam Export Processing Zone (VEPZ), Visakhapatnam, Andhra Pradesh
  • Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat
  • Madras Export Processing Zone (MEPZ), Madras, Tamil Nadu
  • Falta Export Processing Zone (FEPZ), Falta,West Bengal
  • Santa Cruz Electronic Export Processing Zone (SEEPZ), S. Cruz, Maharashtra
  • Cochin Export Processing Zone (CEPZ), Cochin, Kerala
EPZ and Export Promotion thus is interconnected and the government of India has been taking efforts to encourage export from the EPZs in the country. For this in its turn will help India to flourish and prosper.
Meaning of Export Processing Zones
Advantages of EPZ Units in India is that it has given a major boost to the economic growth and industrialization of the country. The Export Processing Zones in India are specialized areas in the country where quotas and tariffs are eliminated.

EPZs in India can also be defined as production centers where large number of labors is employed. The EPZ Units in India involve the import of raw materials and the export of finished goods. The main objectives in setting up EPZ Units in India are to increase foreign exchange earnings and exports. The government of India started setting up EPZ Units in India as early as 1960s. The various Advantages of EPZ Units in India are that 100% foreign direct investment (FDI) are allowed for all the manufacturing activities, there are income tax holidays, and exemption from VAT, import duty, and also various other taxes.
Further the various Advantages of EPZ Units in India are like exemption from duties on all goods that are imported for the purpose of project development and procedural efficiency for fast dispute resolution, clearances, approvals, and customs procedures. Also the various Advantages of EPZ Units in India are that they have a host of private and public bank chains that offer to the business houses financial assistance, along with other facilities like proper sewage and drainage system, and a pollution-free environment. Advantages of EPZ Units in India include in house clearance facilities from customs, abundant supply of trained manpower, and convenient access to railway station and airport.

The various Advantages of EPZ Units in India are that there are no restrictions on foreign ownerships in developing the infrastructure of the Zone and also there are no restrictions on repatriation. Also the various Advantages of EPZ Units in India are that handling of bulk containers and artificial harbor are made operational all through out the year, simplification of procedures related to the labor acts, and exemption from VAT/ excise on goods that are sourced domestically for the purpose of project development.

The government of India has taken all measures to ensure Advantages of EPZ Units in India. This in turn will lead to the growth and prosperity of the country. The various efforts of the government has paid off for the amount of export from the Export Processing Zones in India has increased over the years from ` 1 million in 1966 to more than ` 97727 million in 2002. Further the number of people employed in Export Processing Zones has increased from 70 people in 1966 to over 89,000 people in 2002. Also the total foreign exchange earnings have registered growth from ` 0.16 million in 1966 to over ` 43195 million in 2002. All this shows the Advantages of EPZ Units in India.

The various Export Processing Units in India are:
  • Madras Export Processing Zone (MEPZ), Madras, Tamil Nadu
  • Cochin Export Processing Zone (CEPZ), Cochin, Kerala
  • Falta Export Processing Zone (FEPZ), Falta,West Bengal
  • Visakhapatnam Export Processing Zone (VEPZ), Visakhapatnam, Andhra Pradesh
  • Santa Cruz Electronic Export Processing Zone (SEEPZ), S. Cruz, Maharashtra
  • Noida Export Processing Zone (NEPZ), Noida, Uttar Pradesh
  • Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat
Advantages of EPZ Units in India has attracted many companies to set up their units in the Export Processing Zones in the country. The government of India must continue to provide the best possible facilities to the EPZ Units in India for this in turn will lead to the economic growth of the country

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