Setting up operations in Special Economic Zones (SEZs) in India provides several significant advantages for foreign companies. These zones are designed to foster industrial development and attract foreign direct investment (FDI) by offering a range of incentives.

One of the primary Special Economic Zones India benefits is the comprehensive tax relief provided. Companies in SEZs benefit from a 100% income tax exemption on export income for the first five years, a 50% exemption for the next five years, and a 50% exemption on reinvested export profits for an additional five years. These units are also exempt from Minimum Alternate Tax (MAT) and various state and central taxes, which now fall under the Goods and Services Tax (GST) regime​.

Furthermore, SEZs offer duty-free import and domestic procurement of goods required for the development, operation, and maintenance of units. This significantly reduces the operational costs for businesses. The zones also provide a streamlined regulatory environment with single-window clearances for central and state-level approvals, eliminating much of the bureaucratic red tape​.

Overall, the Special Economic Zones India benefits include tax incentives, duty exemptions, advanced infrastructure, and simplified regulatory processes, making them highly attractive for foreign companies looking to invest and grow in India​.