FreeTrade and Warehousing Zone was introduced in the Exim Policy with the objective to facilitate import and export of goods and services. Basically The Free Trade & Warehousing Zones (FTWZ) is a special category of Special Economic Zones with a focus on trading and warehousing. Each Zone to have Rs. 100 crores outlay and 5 lakh sq.mts built up area. For development and establishment of FTWZ the government has permitted 100% Foreign Direct Investment. Any new policy or amendment related to the Free Trade and
Warehousing Zone will be released with the new Exim Policy 2008-2009 on or after 31st March 2008.

The policy relating to Free Trade and Warehousing Zones is governed by SEZ Act 2005, and the Rules framed there under.