A special economic zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's domestic economic laws. India has specific laws for its SEZs. India was one of the first countries in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. In order to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000. The category 'SEZ' covers a broad range of more specific zone types, including free-trade zones (FTZ), export processing zones (EPZ), free zones (FZ), industrial estates (IE), free ports, urban enterprise zones and others. Usually, the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a Multi National Corporation (MNC). In December 2022, Union Minister of State for Electronics and IT Rajeev Chandrasekhar, in a written reply to a question in Rajya Sabha informed that Special Economic Zones have exported software worth Rs 5.3 lakh crore in 2021–22.

State-wise distribution

List of State-wise Exporting SEZs

A list of functional Special Economic Zones in India has been published.

SEZs set up by the Government of India

KASEZ Kandla Special Economic Zone, at Kandla Gandhidham, Gujarat by Govt of India

State Government/Private SEZs notified/approved prior to SEZ Act 2005

Notified Operational Special Economic Zones

Andhra Pradesh

Chandigarh

Gujarat

Haryana

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Odisha

Rajasthan

Tamil Nadu

Telangana

West Bengal

Uttar Pradesh