Special Economic Zones (SEZs) aim to attract Foreign Direct Investment (FDI) and improve the economy by exporting products and services and finding market globally. They are specifically defined areas where units may be set up for specified purposes of manufacturing or trading or rendering services or providing warehousing facility for export. SEZs are treated as a foreign territory for the purposes of trade operations, duties and tariffs, i.e., goods and services going into SEZ are treated as exports and goods and services coming from the SEZ as imports. SEZs provide easy access to global trading hubs that facilitates the flow of capital, movement of goods and economies of scale, all of which are critical for success of an SEZ. They offer well-developed areas of infrastructure with built up space, power, water supply, transport, housing etc. including physical and social infrastructure facilities.

They are expected to benefit the economy in multiple ways like

• Generation of additional economic activity.1
• Promotion of export of goods and services.2
• Promotion of investment, both foreign and domestic.
• Creation of employment.
• Development of infrastructure.

To attract FDI and overcome the shortcomings experienced in terms of governance, infrastructure, etc., in the Year 2000, Ministry of Commerce and Industries announced the SEZ policy. After this, in Year 2005, the Government passed the SEZ Act, 2005 supported by SEZ Rules, 2006. It envisages key role for the State Governments in Export Promotion and creation of related infrastructure and a simplified approval mechanism through constitution of Board of approval.

GIFT is conceptualized as a global Financial and IT Services hub, a first of its kind in India, designed to be at or above par with globally benchmarked financial centres such as Shinjuku, Tokyo, Lujiazui, Shanghai, La Defense, Paris, London Dockyards etc. GIFT Master Plan facilitates Multi Services SEZ with IFSC (International Financial Services Centre) status, Domestic Finance Centre and associated Social infrastructure. “GIFT SEZ Limited” has been formed by GIFTCL for development of Multi Services SEZ at Gandhinagar with the prime focus on development of IFSC and allied activities in SEZ. It is pertinent to note that the primary focus of the Multi Services SEZ will be on financial services.