India adopted special economic zone (SEZ) model from China in order to increase its exports. In this context, analyse the uniqueness of SEZ model and give your opinion as to why SEZ will increase India's exports.

India adopted SEZ model from China to increase its exports, but India's model represent uniqueness as: China's SEZ initiative is Government driven. But in India, the private sector is also allowed to set up SEZs. There is no minimum area requirement to set up an SEZ in China. However, in India, there exists such a requirement. China does not offer tax incentives across the board to all companies, but India does. Reasons Why SEZ will Increase India's Exports: Incentives and facilities available to units in SEZ such as exemption on duties on Indian capital goods and inputs, exemption, waiver or reimbursement of taxes, Duty-free imports of spares, raw materials, capital goods, and consumables etc. will give a competitive edge to the companies in terms of cost as well as quality, therefore, the companies' manufacturing in SEZ will able to compete in global market and can export more goods in international market.