A Special Economic Zone (SEZ) is a designated area within a country that operates under different economic regulations than the rest of the country. These zones are created to attract foreign investment, boost exports, and promote economic development. Businesses in SEZs often benefit from tax incentives, reduced tariffs, and less stringent regulations, making it easier for them to operate. SEZs can vary in purpose, including manufacturing, technology, or trade. Countries like China and India have established SEZs to stimulate growth and create jobs. By providing a favorable business environment, SEZs aim to enhance the overall economy and improve competitiveness on a global scale.