A Special Economic Zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs were introduced to India in 2000, following the already successful SEZ model used in China. By 2005, all EPZs had been converted to SEZs, SEZ sare located within a country's national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. The main objectives of the SEZ Act are: • generation of additional economic activity • promotion of exports of goods and services • promotion of investment from domestic and foreign sources • creation of employment opportunities • development of infrastructure facilities.