Chinese companies have shown significant interest to invest in the special economic zones (SEZs) in India in a wide range of sectors. Memorandums of Understanding (MoUs) have been signed between Indian state government agencies and Chinese investors such as Beiqi Foton Motors for setting up an auto industrial park in Pune, Maharashtra; China Development Bank Corporation (CDB) and China Small and Medium Enterprises (Chengdu) Investment Limited (CSME) for setting up a multi-purpose Chinese industrial park in Gujarat; Dalian Wanda Group and China Fortune Land Development (CFLD) Co. Ltd. for development of an integrated entertainment park-cum-industrial township and industrial park in Haryana.
The special economic zones (SEZs) in India are offering attractive incentives to foreign investors. SEZs are governed under the following pieces of legislation: Special Economic Zone Act, 2005 (SEZ Act); and Special Economic Zone Rules, February 2006 (under the SEZ Act).
An SEZ may be established under the SEZ Act, 2005, by the central or state government of India either individually or jointly with an individual or by an individual, whether resident in India or outside India, or by any other person including a company whether resident in India or outside India.