ternal e tor in ndia       15.11
     money in the economy in general is called dear                   Sectoral broad-banding has been
     currency, also called as dear money.                             introduced to encompass similar and
          In the banking industry, it means a period of               related areas under the same sector.
     comparatively higher/costlier interest rates regime.             A new sector ‘agro-based food processing’
                                                                      sector has been introduced to encourage
        sPecial economic Zone                                         agro-based industries in SEZs (food
                                                                      processing getting government’s nod
     The special economic zone (SEZ) policy was
                                                                      by late 2016 for 100 per cent FDI by is
     announced by the government in 2000 which was
                                                                      expected to give a big push to it).
     concretised through the SEZ Act, 2005. It mainly
     aims to develop ‘export hubs’ in the country to                  Dual use of facilities like Social and
     promote growth and development. As an idea it                    Commercial infrastructure by SEZs and
     was not new—India had set up Asia’s first ‘export                non-SEZs entities has been allowed in
     processing zone’ (EPZ) in Kandla in 1965 itself.                 order to make SEZ operations more
     Later on the idea got another encouragement                      viable.
     through the ‘export oriented units’ (EOUs). After                Online processing of various activities
     the SEZ policy was formalised through an Act, the                relating to SEZ for improving ‘ease of
     EOUs and EPZs are open to conversion to SEZ.                     doing business’.
     The SEZs can be set up by either the GoI, States                 ‘SEZ India’ mobile app launched to help
     or even private sector—in all three sectors of the               the SEZs to track their transactions on
     economy—agriculture, industry and services. As                   SEZ Online System (launched in January
     per the Ministry of Commerce and Industry, the                   2017).
     principal objectives behind creating SEZs in the            By March 2017, the Government had
     country include:                                       approved 405 proposals for setting up SEZs (in
           (i) generation of additional economic            addition to 7 SEZs of the GoI and 11 of States/
                 activity;                                  private sector which were set-up prior to the
         (ii) promotion of exports of goods and             enactment of the SEZs Act, 2005)—out of which
                 services;                                  206 SEZs are operational. Today, the SEZs are
        (iii) promotion of investment from domestic         invested with Rs. 4.06 lakh crore and have created
                 and foreign sources;                       16.88 lakh employment. They have 23 per cent
        (iv) creation of employment opportunities;          share in India’s total exports.
                 and                                             In recent times, the SEZs have lost their original
         (v) development of infrastructure facilities .     synergy due to global economic slowdown which
          Recent steps (till March 2017) taken by the       followed the great recession among the developed
     Government to strengthen SEZs in the country           economies. Meanwhile, the Government has been
     are as given below17:                                  taking various steps to encourage them.
                Minimum Land Area requirement for
                setting up of new SEZs has been reduced        gaar
                to 50 per cent for multi-product and        The GAAR (General Anti-Avoidance Rules),
                sector-specific SEZs.                       originally proposed in the Direct Taxes Code 2010,
       17.    Ministry of Commerce and Industry, Government are targeted at arrangements or transactions made
              of India, N. Delhi, March 2017.               specifically to avoid taxes. The government had