A Special Economic zone (SEZ) or free Trade Zone (FTZ is typically an enclave of units operating in well defined area within the geographical boundary of a country where certain economic activities are promoted by a set of poilicy measures that are not generally applicable to the rest of the country. These zones are known by different name such as Free Trade Zones (FTZ) Industrial Free Zones Special Economic Zones (SEZ) Bonded Free ones Maquiladoras (Mexico) and Special Economic Zones (China) These zones offer high quality infrastructure facilities &Support services and allow duty free imports of capital goods and raw materials. In addition attractive fiscal benefits, relaxed labor laws and simpler procedure are also offered in such zones. Over the years this concept has expanded and evolved to encompass larger areas, higher levels of integration with the defined geographical boundaries and increased integration and the local economy. SEZs today are not only a tool for export development but also contains in them the potential of generating economic spin off of enormous proportions leading to regional development.