The orientation of the economical business is being evolving since the time of the introduction of the New Economic Policy. In very similar terms, the Government of India now plans to restructure the Special Economic Zones (SEZ) fundamentally that have been created for the vibrancy of the Indian economy. This place is used as one stop area for all the imports and exports from other foreign nations for the economic activity that will increase investment in India. The major function is to create a special trade zone wherein all the imports and exports would be focused on creating a larger impact on the economy.
But, now with the inclusion of the twelfth five-year plan and decision taken by the National Institute for Transforming India (NITI AAYOG), these Special Economic Zones are to be renamed and change would be known as the Development Hubs for India. This, some of the functions of the SEZ would also change with this new act. Though it will have its primary focus on increasing Foreign Direct Investment (FDI), with this the industrial hubs will now also focus on boosting the manufacturing for the domestic market and it will go hand in hand with the foreign market.
These development hubs will also procure some great opportunities for employment among the youth of the nation. The SEZ would finally draft and would be renamed Development of Enterprise and Service Hubs (DESH). Here, from this law, all domestic products would be able to supply and fulfill the demand of the requisite consumer that has the urge for that product. Additionally, DESH will not have any extra burden unlike the Special Economic Zone, it will be free from the positive transaction of the foreign exchange and will not require those tidy paperwork.
As of now, the DESH Act would replace the SEZ Act 2005, which will indeed give the development hub more autonomy in terms of working environment, the bill that was introduced has a proper equalization of levy clearance in both domestic and international trading market. This law has impressed most of the MNCs and they have already started looking forward to moving with this new trend of law. Pratik Jain, a partner at Price Waterhouse & Co. LLP, stated that the bill was a need, and it will oversee a “fundamental shift” from the previous methods of trading to the much-evolved version of trade for all the MNCs.
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