What factors contributed to the new SEZ policy
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New SEZ policy bats for easy exits and flexibility in leases
India had 232 SEZs, of which 25 are multi-product ones and the rest are sector-specific ones, with 5,109 approved units, as of March 31.
By Kirtika Suneja, ET Bureau | Updated: May 26, 2019, 10.53 PM IST
The overhaul plan comes as the US has challenged the SEZ scheme at the World Trade Organization.
NEW DELHI: India is set to revamp the special economic zones (SEZs) framework to house a wider range of companies, allow flexible long-term leases and make exits easy to lure investment. Apart from this, non-processing areas in such enclaves can be used to boost exports and employment generation.
“We need bold measures to revive investment, promote manufacturing and exports from SEZs, and boost job creation,” said a senior government official aware of the deliberations. “The new SEZ policy needs to be future-ready, investor-friendly and correspond to global market needs.”
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India had 232 SEZs, of which 25 are multi-product ones and the rest are sector-specific ones, with 5,109 approved units, as of March 31. The sector-specific SEZs are meant for IT and IT-enabled services. Under the proposed policy, these could be opened up to sectors such as tourism and multimedia services.
The policy will seek to provide ease of operation and exit, procedural relaxations, and uniformity in administrative and financial matters among all SEZs. It could also provide easier subcontracting for customers outside the zones. The units now need permission to subcontract any part of their production or production process to units in other SEZs.
Answer:
contract processing for data sale must be allowed for sez units for full capacity utilization as exports are not viable all the time
Explanation: