A geographical region encompassing more liberal economic laws than a country's typical economic laws can be referred to as a Special Economic zone (SEZ). A policy of setting up of SEZ was introduced in India on April 1, 2000 with a view to providing a more competitive free trade environment for exports. The SEZs in India are not only expected to bring large flow of foreign direct investment but also domestic investment, which will help in generating additional economic activity in the form of creating employment opportunities, infrastructure development and enhancing productive capacity as well as capabilities.