Exporting units in special economic zones (SEZs) should be given incentives for the degree of added value it brings to a product in order to stimulate outbound shipments and attract investment in those zones, TPCI said on Saturday. Founding Chairman of the Trade Promotion Council of India (TPCI), Mohit Singla, said that at present, an exporter in a SEZ and a foreign exporter are on a par when it comes to selling goods in a SEZ. national tariff zone (DTA).
“Therefore, an exporter within the SEZ should be incentivized on the degree of added value that he brings to a product. It should be allowed to import raw materials at zero duty and to benefit from a duty refund proportional to value added. This will keep it in an advantageous position compared to importing finished products from another country, ”he said.
He said this during TPCI’s webinar on SEZs, the key to boosting Indian exports.
ARM Reddy, Zone Development Commissioner, Vishakhapatnam, said SEZs are doing well in India as exports from these zones increase. “In 2005-06, exports were at Rs 0.23 lakh crore, and now they stand at Rs 5.53 lakh crore in 2020-21 despite the pandemic,” he said.
Exports from SEZs and Export Oriented Units (EOUs) contributed about 30 percent of the country’s total shipments.