Special Economic Zones in India
India's Zone History: Kandla to the SEZ Act
India set up Asia's first export processing zone at Kandla in 1965, introduced an SEZ policy in 2000 and passed the SEZ Act in 2005.
India was early but slow.
Kandla
The Kandla Export Processing Zone in Gujarat began in 1965.
EPZs
Several more zones followed, but they struggled with small scale and tough rules.
SEZ policy
The 2000 policy and the 2005 SEZ Act offered larger zones, more incentives and single-window clearance.
Boom
Hundreds of zones were approved in the late 2000s.
Gujarat's first
Kandla's port location made it a natural site for a first zone.
Assuming India's first zones were failures
They were early steps.
Key takeaways
- Kandla opened in 1965.
- The SEZ Act passed in 2005.
- Zones were expanded in size.
- Many were approved after 2005.
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