Every year, the number of special economic zones increases. On the one hand, this is a great chance to bust the state’s economy and attract investors. On the other hand, there is a probability to create unfair market competition. This may place other WTO members in an unfavourable position, posing a mitigation risk. To avoid this, the government should implement only special economic zone schemes following WTO regulations. This article will study which incentives are allowed by the WTO law and prohibited. Apart from this, will be reviewed India’s case as an example of the transformation from special and differential treatment to the generally applicable WTO rules. This will include an analysis of the regulations, WTO case law, and suggestions for future regulatory reform.

Special economic zones, world trade organisation, SEZ in India

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