 I am here to discuss with you on topic special economic zones that is SAIS. Learning outcomes of today's session are at the end of the session students will be able to define SAIS that is special economic zone and explain importance of SAIS in India's development. Let us see definition of SAIS. A special economic zone is defined as a geographical region that is designed to export goods and provide employment. So this is the definition of SAIS. So what is SAIS? It is a geographical region and what is the purpose of its to export goods and provide employment also. Now remember in order to make the goods manufactured in SAIS at globally competitive prices these regions are exempted from some of the laws like federal laws regarding taxes, quotas these are exempted from quotas. Then FDI bans, then labor laws and other restrictive laws. So some concession is given to SAIS so that the goods which is manufactured will be at a globally competitive price and these are enlisted like this. Now what SAIS includes? SAIS includes EPZ that is export processing zones, FZ free zones, FTZ free trade zones, free ports, urban enterprise zones, free economic zones, industrial parks or industrial estates. So all these are components we can say of SAIS or they are included under SAIS. Now what is SAIS policy by government of India? See government of India is the first in Asia to recognize the effectiveness of the export processing zone EPZ model in promoting exports with SAIS first EPZ setup in Kandla in 1965 remember we have taken initiative right in 1965 in this direction. Now SAIS policy was announced in April 2000 by government of India to overcome the shortcomings which are experienced in account of on account of the multiplicity of controls and clearances right also absence of world class infrastructure and all these things. So EP this economical zones policy was announced in 2000 by government of India. Now what are the objectives of the policy which is announced by government to make SAIS an engine for economic growth supported by quality infrastructure complimented by an attractive fiscal package both at the center and the state level with the minimum possible regulations remember this is the objective of the policy announced by government of India right here you can see a special reason SAIS right constructed. Now let us go for SAIS Act the Special Economic Zones Act 2005 which was passed by parliament of India and this came into effect on 10th February 2006 remember so SAIS Act was passed by government in 2005 and this was started or came into existence from 10th February 2006 right. Now what are the objectives of this SAIS Act generation of additional economy or economy activity promotion of exports of goods and service promotion of investment from domestic and foreign sources creation of employment opportunities development of infrastructure facilities see all these are the objectives of this Act right so promotion of SAIS is important and for that these objectives are kept in front of our country. Now SAIS and export promotion the SAIS and export promotion facilitated the growth of the Indian SAIS remember the main factor for the underperformance of SAIS was poor export policy of India loaded with huge taxes and duties this was the reason why initially there was some underperformance right of the SAIS. So necessary steps are taken in order to overcome these difficulties so the government of India eased the export policy of India to facilitate easy growth of SAIS and export promotion of Indian goods across international destinations right. So this was the step taken by the government of India now which are the SAIS setup in India special economic zone in Mumbai Maharashtra ships SWP's head then Noida special economic zone Uttar Pradesh multi-product then MEP's head special economic zone Chennai Tamil Nadu again a multi-product Cochin special economic zone Cochin Kerala then FALTA special economic zone FALTA West Bengal these are the SAIS setup in India right now what is the provision under SAIS hundred percent FDI for manufacturing sector remember right foreign investment hundred percent then income tax benefit duty free import of domestic goods exemption from CST exemption from income tax on investments enhance a limit for managerial remuneration applicability of labour laws. So all these are the provisions which are facilitated for SAIS so that its function can be smooth now what is the controversy in SAIS in spite of the strong objectives of the Indian government the SAIS policy has the following controversies which are those generation of a little new activity as there may be relocation of industries to take advantage of tax concessions this is one controversy then revenue loss then large scale land acquisition by the developers may lead to displacement of farmers with meager compensation right acquisition of prime agricultural land having serious some implications for food security so these are some of the controversies which take place right now we will see advantages of SAIS what are the advantages growth and development this is the most prominent advantage of SAIS growth and development of nation this attracts FDI remember right then exposure to technology and global markets increase in GDP and economic model gross domestic product right then economic model employment opportunities are created these are the advantages of SAIS which are helpful for development of our nation dear friends let us stop a while here let us pause video here are some review questions for you write their answers neatly first is SAIS is intended for there are four options select the correct option then second is the main factor for the under performance of the SAIS where there are again some options write your correct answer and third question is SAIS act was passed by Indian parliament in write down the correct option come on here are the answers first question D is the correct answer all of these second question also D is the correct option D means all of these and third option SAIS act was passed in 2005 C is the correct answer the government of India right so these are the answers now these are the references for student today's session dear students go through them thank you