Special Economic Zone (SEZ) refers to a very commercial area specially established for the promotion of foreign trade. A Special Economic Zone could be a realm that has economic laws more liberal than a country’s typical economic laws. Usually the goal is flourishment in foreign investment. In other words, SEZs are specifically delineated enclaves treated as foreign territory for the aim of business, service and trade operations, with relaxation in customs duties and a more liberal regime in respect of other levies, foreign investments and other transactions. These regions exists in many countries of the globe and China perhaps the oldest to allow reality to the current concept. Typically they're regions designated for economic development oriented toward inward FDI and exports fostered by special policy incentives. India is well positioned in many respects for a replacement era of growth that SEZ policy encompasses a very crucial role to play in the inclusive growth of nation’s economy. Inclusive growth doesn’t mean developing sizable amount of SEZs or industrial townships in the country but to come up with more and more employment and providing skill development to human resource. The SEZs Act 2005, has paved way for establishment of SEZs across our country to witness an accelerated growth by means of rapid industrialization process. The intended purpose is to produce a stable policy framework for creating special economic zones which may function engines for industrial growth, employment generation, infrastructural development and exports. Of these benefits will visit the agricultural population if they're established in rural areas leading to income poverty and non-income poverty alleviation. In India most the SEZs are proposed to be in urban and semi-urban areas, that too in already industrially advanced States. Hence, this can be the proper time to debate and redirect the establishments of SEZs towards the agricultural parts of the country for an inclusive and balanced growth of the economy, Special Economic Zones are touted across the developing world in concert of the chief instruments through which a nation can do rapid industrialization through exports. SEZs differ from the older and more acceptable concept of business clusters that's industrial zones that compile different productive units, with good infrastructure facilities and simplified procedures. However additionally to all or any above benefits the labour issues greatly impacts by this development of SEZ in India. This text is highlighting to such labour issues for the identical.

KEYWORDS: Industrialization, Economy, Investments, Manufacturing, Special Economic Zone.