The benefits including tax benefits, facilities, etc. given to units in a SEZ and the Developer thereof, are widely known. The structure of a SEZ is also defined in the EXIM Policy.
The zones' performance in attracting investment and promoting export competitiveness seems to be directly related with the location, infrastructure facilities, quality of governance and the incentive packages. There should be a vision in the design, establishment and operations of the SEZ. It is necessary to develop zones as industrial clusters of specific products. The backward linkages would benefit the growth of accessories units as well. The zones should specialise in terms of economic activities depending on the availability of human capital, resources and infrastructure in the region. They thus tend to transform into horizontally-integrated industrial clusters, which include industries that might share a common market for the end products, use a common technology or labor force skills, or require similar natural resources. It seems, therefore, that it would be desirable to develop zones as industrial clusters of specific products. This may encourage downstream industries also.