Meaning of Export Processing Zones

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Export Processing Zones (EPZs) can be summarized as a unit bearing clusters of specially designed zones of aggressive economic activity for the promotion of export. The main concept of Export Processing Zones was conceived in the early 1970s to promote the growth of the sickening export business of India. Further, the meaning of Export Processing Zones (EPZs) can be broadly defined as an area enjoying special government of India support with respect to fiscal incentives, tax rebates and other exclusive benefits for the growth of export.

Export Processing Zones (EPZs) also encompasses pre-defined infrastructural facilities and regulations pertaining to establishment of such zones and environmental stipulations, respectively. These Export Processing Zones of India were established to help the growth of Indian export commodities, especially from the fast growing sectors.

Objectives of setting up of EPZs



  • Encourage and generate the economic development
  • Encourage Foreign Direct Investments (FDI)
  • To channel the sources of foreign exchange within the system in a phased manner
  • Foster the establishment and development of industrial enterprises within the said zones
  • Encourage and generate wider economic activities by encouraging foreign investments for the development of the zones
  • To channel the foreign exchange earnings for the further development of these zones and explore new areas for the development of Indian exports
  • Encourage establishment and development of Indian industries and business enterprises and facilitate with proper infrastructure Generate employment opportunity
  • Upgrade labor and management skills
  • Acquire advanced technology for increased productivity
  • Ensure world class quality of products

Three-tier management system in EPZs



  • Tier one is headed by the Ministry of Commerce headed by the Commerce Secretary, which drafts and implements policies and reviews the performance of each such zones
  • Tier two is headed by the Board of Approval (BOA), which is responsible for examination of proposals for opening up of new enterprises in the zone and which is headed by a person of the level of Additional Secretary
  • The Development Commissioner, who is the chief executive of the Export Processing Zone, heads the three tiers. The Development Commissioner is vested with the power for the day-to-day function of the zone. Further, he is the head of functions relating to administration, approval of investment, and he also enforces various regulatory provisions
Export Processing Zones (EPZ) Location Map:

Export Processing Zones (EPZ) Location Map


Prominent Indian Export Processing Zones



  • Kandla Free Trade Zone (KAFTZ), Kandla, Gujarat
  • Santa Cruz Electronic Export Processing Zone (SEEPZ), S. Cruz, Maharashtra
  • Cochin Export Processing Zone (CEPZ), Cochin, Kerala
  • Falta Export Processing Zone (FEPZ), Falta,West Bengal
  • Madras Export Processing Zone (MEPZ), Madras, Tamil Nadu
  • Noida Export Processing Zone (NEPZ), Noida, Uttar Pradesh
  • Visakhapatnam Export Processing Zone (VEPZ), Visakhapatnam, Andhra Pradesh
  • While the Santa Cruz Electronics Export Processing Zone (SEEPZ) is meant exclusively for the exports of electronics and gems and jewelry, all other zones are multi-product zones. 100% foreign equity is welcome in EOUs and EPZs