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A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. One of the earliest and the most famous Special Economic Zones were founded by the government of the People's Republic of China under Deng Xiaoping in the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has developed from a small village into a city with a population over 10 million within 20 years. Following the Chinese examples, Special Economic Zones have been established in several countries, including Pakistan, India, Iran, Jordan, Poland, Kazakhstan, the Philippines,Russia, and Ukraine. North Korea has also attempted this to a degree, but failed. Currently, Puno, Peru has been slated to become a "Zona Ecomomica" by its president Alan Garcia. In the United States, SEZ are referred to as "Urban Enterprise Zones".

The special economic zones in India were established with a view to bring expertise for the country's exports sector. For this a policy was introduced on 01.04.2006. As to these policies, the Government has set up SEZ's in the public, private, joint sector or by State Governments. In this regard some of the existing Export processing zones were converted in to Special economic zones.

Kandla Special Economic Zone. Kandla Special Economic Zone (KASEZ) earlier known is located at the port town Gandhidham in the state of Gujarat. The Kandla Special Economic Zone (KASEZ) is the first in Asia and largest multi-product Special Economic Zone in India. The concept of the Special Economic Zone at Kandla has been formulated on the basis of the new Special Economic Zone (SEZ) scheme introduced in the Export and Import Policy from the year 2000.

The main purpose is to offer an environment for export production. The KASEZ offers all facilities to the exporters and hence it is in demand among the export-oriented manufacturing units in India. The net foreign exchange earning of the Kandla Special Economic Zone is more than 60%, the highest among others across the country. There are over 15,000 workers employed in the units of Kandla SEZ including many women workers.

The Kandla Special Economic Zone following the Govt. of Gujarat’s Policy on SEZ offers infrastructural facilities encompassing land, factory premises, abundant labor supply, co-operating administration support, water, power, clearance benefits, telecommunications, and urban transport services. Recently, TATA Consultancy Services has announced the launch of PKI or Public Key Infrastructure solution for the Kandla Special Economic Zone (KASEZ). Along with the highly developed infrastructure the Kandla Special Economic Zone has a noteworthy geographically strategic position, as it is located only at a distance of 9kms away from the modern and all-weather friendly port of Kandla in Gujarat. Such facilities within the Kandla SEZ make it the best possible and most lucrative SEZ unit for manufacturing goods for export-oriented trading activities. The major industries operating their export-oriented units in the Kandla Special Economic Zone includes Gems and Jewellery, Electronic, Software, Textile and Garments, Engineering Goods, Sports Goods, and Leather Products.

Gujarat Special Economic Zone. The Government of Gujarat has issued a set of policies under the Government of India for the special economic zone in Gujarat in terms of infrastructural development for an augmented export production.

SEZ in Gujarat has been planned with the aim bring in large dividends to the state that will lead to an accretion in the industrial development as well as generate new job opportunities.

The state government has converted the two free trade zones, which are known as Kandla Free Trade Zone and Surat Export Processing Zone into special economic zones and these were already existing from before. These are in operation of late along with few more proposed units to be set up in the Gujarat Special Economic Zone. A number of incentives and facilities have been offered by the Central Government both to the Gujarat SEZ developers and the industrial units that are about to be established in the special economic zone of the state. Various units are being permitted for setting up in the Gujarat special economic zone. These units include manufacturing, trading or service activities. The Development Commissioner approves the proposals put forth for the setting up of these units in the SEZ. The State Government set the incentives and facilities to be offered by the SEZs in Gujarat through the units.