Exploring the Role of India’s Free Trade Zones

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Free Trade ZonesWhat exactly are India’s free trade zones? How have they contributed to the economic growth of the country? If you’re not familiar with India’s free trade zone (FTZs), this blog post will help you gain insight into these business hubs.

Furthermore, it will reveal whether or not you should switch your supply chain to FTZs and tell you about the various services offered by such zones that can make your business thrive in the area.

What are FTZs?

FTZ or free trade zone is a designated area in which goods may be imported and exported without being subject to customs duty. Many countries have established FTZs for these purposes –

  • Boosting Foreign Trade
  • Reduction of compliances
  • Duty & Tax Benefits to Businesses
  • Just in Time Inventory Model
  • Value Addition Services at a Single Place

How does India’s Free Trade Zone Help us?

A free-trade zone is a facility that allows the international import and export of goods deferring taxes and custom duty.

  • The FTWZ are across prominent tier I cities including Mumbai and Chennai which encourages and promotes foreign direct investment in nations.
  • It has created job opportunities for the local population as well as brought foreign investors into the many growing industries – Pharmaceuticals, Chemicals, Cosmetics, Medicals Devices to name a few.
  • By registering with an FTZ unit, companies don’t have to pay duty for importing raw materials or final goods, It would only be charged for DTA Sales
  • Re-packaging, Labelling, Kitting, Lashing, Shrink Wrapping, Bottling, Clubbing are a few of the many activities that can be pursued inside FTWZ


Here are 3 main reasons for choosing OSV FTWZ –

State of the Art of Infrastructure – OSV’s FTWZs has world-class infrastructure with advanced machinery, magnetic flooring, respective temperature, cold storage spaces, and a lot more,

Customs Clearance – In the case of other warehousing mediums customs clearance is something that is very hectic and complex. As FTWZ is deemed to be a foreign territory the compliances of customs clearances are lessened. In the case of other mediums where 3 to 4 days are generally taken in clearing the goods, in OSV FTWZ it reduces to 24 to 48 hrs.

Just in Time – OSV FTWZs through the JIT model reduces the need to store excessive levels of materials in a warehouse thus making the companies supply chain more efficient and responsive.

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