New Delhi: Special Economic Zones (Sezs) have contributed handsomely to the total exports of the country. According to the latest data, exports from SEZs have grown 67% y-o-y to Rs.58756.68 (USD 1244 billion) crore in the first quarter of 2010-11. During April-June period of 2009-10 exports from SEZs stood at Rs.35,013 crore (USD 741.480 billion).
Exports from SEZs clocked a growth of over 122% to Rs. 2.20 lakh crore in 2009-10, compared to the previous fiscal. However, SEZ developers and units have expressed concern over the new draft direct rax code (DTC), which proposes to do away with income tax benefits given to new SEZ units.
A commerce ministry official said that any such rules would be counter productive as it would affect the manufacturing growth. "So far, SEZs have attracted a fresh investment of Rs. 1.66 lakh croreto create the manufacturing facilities in the county." said the government official.
IT, IT hardware, petroleum, engineering, leather and garments are the leading exports from SEZs. According to a government official growth of exports is expected to rationalize to about 20% in 2010-11. Of the total 578 approved SEZs, 111 are operational.
Under the SEZ Act, units in these zones enjoy 100% tax exemption on their income for the first five years and 50% in the following five years.
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