What are SEZ
To attract foreign investments in our country , the government has established some well factilated zones called special eononmic zones. The zones are well equipped with exclusive facilites like water, electricity , shopping etc. so that more and more foreign investments are attracted .The investors who invest here do not have to pay taxes for an initial period of 5 years.They are also free from obeying labour laws .They can hire labours on contract basis.I think this would be enough for 3 marks answer and if you need more , you may refer to the yellow paragraph of SEZ in NCERT.
SEZs are special economic zones where world class facilities like water, electricity, roads and transport, recreation, education are available. They have been set up to promote foreign companies to invest in India.Companies with production units in the SEZs do not have to pay taxes for the initial period of 5 years.
Special economic zone.Companies under this zone are free to pay any type of tax for initial period of five years
A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country