of Korea, United Arab Emirates (Dubai) and Vietnam, with whom India competes to get FDI and technology. The paper … concludes that all countries provide direct tax incentives to SEZs, and hence, if India wants to continue with the SEZ policy … exemptions. It makes policy recommendations on how to make the SEZ policy successful and an instrument of the "Make in India …

We characterise optimal tax policies when the government has access to consumption taxation and cannot credibly commit …