An analysis of the special economic zones in india

Development Commissioner is the nodal officer for SEZs and help in resolution of problem, if any, faced by the units or developer.

special economic zones in india principles problems and prospects

SEZ units are liable for penal action under the provision of Foreign Trade Development and Regulation Act, in case of any violation in the rules formulated by the Approval Committee.

The ICRIER study was commissioned in April this year against the backdrop of declining interest in SEZs after the government imposed a minimum alternative tax on SEZ units in April and to examine many negative perceptions about the industrial zones.

An analysis of the special economic zones in india

If not for profit through land deals, local politicians also use site selection of SEZs to target specific ethnic and caste groups to create vote banks. A separate units is also there who monitor the performance of the SEZ units on a periodic basis and is governed by the Approval Committee. Only are operational. The commerce ministry provides incentives to exporters outside SEZs through the duty drawback scheme, and focus market and focus product schemes, among others. Site selection for SEZs has been guided by self-serving agendas rather than considerations of growth and development. The duty drawback scheme allows manufacturers to seek a refund of duty paid on imported materials used in the manufacture of goods which are exported; the focus market and focus product schemes incentivize exports to specific geographical regions and specific products. Only when the goods are moved to consumers within the country in which the zone is located do they become subject to the prevailing customs duties. Units in SEZs still enjoy income-tax benefits.

Exports from Indian SEZ totalled 2. We should go back to the original idea and develop such zones as pockets of excellence," he said. The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval.

in india special economic zones were established to enhance

A number of meetings were held in various parts of the country both by the Minister for Commerce and Industry as well as senior officials for this purpose.

Only are operational. Mukherjee pointed to a difference between the models followed by China and India— while China created a limited number of large, self-sustainable, confined enclaves near port facilities to boost exports, India opted to license a large number of SEZs without ensuring proper infrastructure outside the zones.

Sez policy india

Representative of the State Government. We should go back to the original idea and develop such zones as pockets of excellence," he said. All post approval clearances in matters related to importer-exporter code number, change in the name of the company or implementing agency; broad banding diversification, etc. Free-trade zones are organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade. Public transportation options may be limited or non-existent. Attractive incentive and great investment opportunities have attractive many business tycoons to step into the SEZ all over the country. It was hugely successful, and is still in operation today. There may be few or no special environmental safeguards.

Promotions of local leaders in China are often based on parameters such as GDP gross domestic product growth in their jurisdictions, which means they are more motivated to pursue local development.

In order to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones SEZs Policy was announced in April

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Why special economic zones have failed in India