Otherwise in the backdrop of slowing demand in the international market and continuously declining India's exports, regaining investor's confidence in SEZ is very difficult, he further added.

Over Rs. 3 lakh crores have been invested by Government and private enterprises and almost 33% of India's total exports are done through SEZs. Tax exemptions and provisions proposed in the Act have actually been the impetus for this huge investment.

The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments. But the original intention of setting up special economic zones (SEZs) is not producing desired result now.

The Act was implemented with the main objectives of generating additional economic activity through promotion of exports and creation of new employment opportunities.
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