The Special Economic Zones Act, 2005

The Special Economic Zones Act, 2005 was enacted to encourage businesses to invest and develop in India's designated Special Economic Zones (SEZs). The Act provides for the establishment, development, and management of SEZs, which are deemed to be foreign territories for trade and investment purposes. The Act allows for the creation of a single-window clearance mechanism for SEZs, making it easier for businesses to set up operations. The Act also provides for various tax incentives and other benefits to businesses operating in SEZs. However, the Act has been criticized for favoring big businesses over small and medium-sized enterprises, and for the displacement of local communities due to SEZ development.