The overall scenario for Greenfield and Functional SEZs in India has been mixed. Lots of SEZ projects have been approved but have not been implemented due to political and legal problems. The period of past 45-months has merely been a preparatory phase for Indian SEZs. Tamilnadu and Gujarat got the first approval of such projects but Maharasthra was the first state which announced its SEZ policy on October 12, 2001, which includes even relaxations in labor laws. An attempt has been made to convert Export Processing Zones in the places like, Kandla, Surat, Kerala and Cochin into fullfledged SEZs. One needs to examine the business environment and success factors of establishing SEZs in Indian context.

In India, the government and its operational systems are highly constrained under the plethora of complex regulations. The policy makers need to think seriously about this in order to move firmly and steadily towards its goal by formulating schemes, finalizing concessions, reliefs, setting up guidelines as procedures and ultimately coming to the stage of SEZs Bill which will create independent identity for SEZs. Originally, the effort was to legislate on the state side, but this was not working. Therefore, now it has been decided to centralize the basic port policy issues.

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