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Export Processing Zones In India and its Performance

Export Processing Zones In India and its Performance

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A free trade zone (FTZ) or export processing zone (EPZ) is an area of a country where some normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered in hopes of attracting new business and foreign investments.It is a region where a group of countries has agreed to reduce or eliminate trade barriers.Free trade zones can be defined as labor intensive manufacturing centers that involve the import of raw materials or components and the export of factory products. The world's first Free Trade Zone was established in Shannon, Co. Clare, Ireland Shannon Free Zone.This was an attempt by the Irish Government to promote employment within a rural area, make use of a small regional airport and generate revenue for the Irish economy. It was hugely successful, and is still in operation today.
Export Processing Zones and its Performance