Which was the first zone in India?

Kandla: The Birthplace of India’s Export Processing Zone Revolution

In the tapestry of India’s economic history, Kandla Port stands as a vibrant thread, weaving together the nation’s embrace of international trade and the genesis of specialized economic zones. As early as the dawn of export-oriented industrialization, Kandla embraced a visionary concept that would revolutionize India’s economic landscape.

The year was 1960, and India was poised on the cusp of a new era. The government recognized the immense potential of international trade as a catalyst for economic growth. However, infrastructural hurdles and inefficient customs procedures posed significant barriers to exporters.

Enter Kandla Port, situated on the western coast of Gujarat. With its strategic location and deep-water harbor, Kandla became an ideal gateway for goods bound for distant shores. In a bold move, the government established India’s first Export Processing Zone (EPZ) at Kandla in 1965.

The EPZ concept was transformative. It created a designated area within which exporters enjoyed various incentives, including duty-free imports of raw materials, streamlined customs procedures, and reduced taxation. This fostered an environment conducive to the growth of export-oriented industries, from textiles to engineering goods.

The success of the Kandla EPZ paved the way for the establishment of similar zones across India. Over the decades, EPZs have played a pivotal role in attracting foreign investment, boosting exports, and creating employment opportunities.

Today, Kandla Port continues to be a thriving hub for international trade. It is ranked among India’s top ten major ports and has expanded its operations to include a container terminal, a bulk cargo terminal, and a ship repair facility.

The legacy of Kandla as the birthplace of India’s EPZ revolution cannot be overstated. It stands as a testament to the vision, innovation, and determination that have shaped the nation’s economic trajectory. As India continues to emerge as a global economic powerhouse, the lessons learned at Kandla will undoubtedly continue to guide policymakers and businesses alike.