Special Economic Zones (SEZs) have been instrumental in propelling India’s export growth, contributing significantly to the nation’s economic development. However, SEZs face numerous challenges that can impede their efficiency and effectiveness. The Export Promotion Council for EOUs and SEZs (EPCES) plays a pivotal role in addressing these challenges, providing support and solutions to enhance the performance of SEZs.

Common Challenges Faced by Indian SEZs

1. Regulatory Hurdles: Despite the streamlined protocols established under the SEZ Act of 2005, SEZs often encounter complex regulatory frameworks that can lead to delays and increased operational costs. Navigating through various compliance requirements can be cumbersome for businesses operating within these zones.

2. Taxation Issues: The imposition of taxes such as the Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) has been a significant concern for SEZ units. These taxes can erode the profitability of businesses and deter potential investors from establishing operations within SEZs.

3. Infrastructure Deficiencies: While SEZs are designed to offer superior infrastructure, there are instances where inadequate facilities, such as insufficient power supply, poor transportation links, and lack of essential amenities, hinder operational efficiency.

4. Land Acquisition Challenges: Acquiring land for SEZ development can be fraught with difficulties, including legal disputes, resistance from local communities, and issues related to fair compensation. These challenges can delay projects and escalate costs.

5. Global Competition: Indian SEZs face stiff competition from SEZs in other countries that may offer more attractive incentives, better infrastructure, or more favorable regulatory environments. This global competition necessitates continuous improvement and adaptation by Indian SEZs.

How EPCES Offers Solutions

EPCES serves as a crucial intermediary between the SEZ community and the government, implementing various strategies to mitigate the challenges faced by SEZs:

1. Advocacy for Policy Reforms: EPCES actively engages with government bodies to advocate for policy changes that benefit SEZs. For instance, the council has been instrumental in pushing for the restoration of original tax benefits under the SEZ Act, aiming to make SEZs more attractive to investors.

   Paisabazaar

2. Organizing Open Houses and Interactive Sessions: To address regulatory and operational issues, EPCES organizes open house meetings and interactive sessions across different regions. These platforms facilitate direct dialogue between SEZ units, developers, and government officials, enabling the swift resolution of issues and dissemination of important policy updates.

3. Trade Promotion Activities: EPCES regularly participates in international trade fairs and exhibitions to promote exports from SEZs. By showcasing products and services on global platforms, EPCES helps SEZ units expand their market reach and establish international partnerships.

4. Financial Assistance through MAI Scheme: Under the Market Access Initiative (MAI) Scheme, EPCES provides financial assistance to SEZ units for export promotion activities. This support helps businesses explore new markets, conduct market research, and participate in international trade events.

5. Information Dissemination and Capacity Building: EPCES keeps its members informed about the latest developments in domestic and international markets through regular newsletters, circulars, and publications. The council also organizes seminars and workshops to enhance the competitiveness of SEZ units by providing training on best practices, compliance requirements, and emerging market trends.

Impact of EPCES Initiatives

The efforts of EPCES have yielded tangible results in enhancing the performance of Indian SEZs:

• Increased Exports: SEZs have seen a significant boost in exports, contributing approximately 19.5% to India’s total exports in the fiscal year 2012-13.

• Employment Generation: SEZs have been instrumental in job creation, with total employment rising from 134,704 in 2006 to over 1.5 million by January 2015.

• Attraction of Investment: Through its engagement with global players, EPCES has been successful in attracting investments into SEZs, thereby fostering economic growth and development.

  The Times of India

Altus Exports: Empowering Indian Manufacturers in Global Markets

While EPCES provides macro-level support to SEZs, individual manufacturers often require personalized assistance to navigate the complexities of international trade. This is where Altus Exports steps in as a valuable partner for Indian manufacturers aiming to export their products.

How Altus Exports Can Assist

1. Market Research and Entry Strategies: Altus Exports conducts comprehensive market research to identify lucrative opportunities and develop effective entry strategies tailored to specific products and target markets.

2. Regulatory Compliance Support: Navigating international trade regulations can be daunting. Altus Exports offers guidance on compliance with global standards, documentation requirements, and certification processes, ensuring a smooth export journey.

3. Logistics and Supply Chain Management: Efficient logistics are crucial for successful exporting. Altus Exports manages the end-to-end supply chain, including warehousing, transportation, and distribution, to ensure timely and cost-effective delivery of products.

4. Financial Services: From facilitating access to export financing to managing currency risks, Altus Exports provides a range of financial services to support manufacturers in their export endeavors.

5. Marketing and Branding: Building a strong brand presence in international markets is essential. Altus Exports assists in developing marketing strategies, promotional materials, and digital campaigns to enhance brand visibility and attract global customers.