Role of SEZs?

Question

Are SEZs a boon or a bane to Indian Economy?

Answer 1

SEZs are a boon more than a bane .

A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. Usually the goal is an increase in foreign investment. Special Economic Zones have been established in several countries, including the People's Republic of China, India, Iran, Jordan, Poland, Kazakhstan, the Philippines and Russia. North Korea has also attempted this to a degree, but failed. Currently, Puno, Peru has been slated to become a "Zona Ecomomica" by its president Alan Garcia. In the United States, SEZ are referred to as "Urban Enterprise Zones"

Currently, India has 15 SEZs, each an average size of 200 acres. The government has approved as many as 164 or more SEZs. 8 Export Processing Zones (EPZs) have been converted into SEZs. These are fully functional. All these SEZs are in various parts of the country in the private/joint sectors or by the State Government. Other details shall be found in SezIndia.nic.in[2],SezIndia.com[3] But this process of planning and development is under question, as the states in which the SEZs have been approved are facing intense protests, from the farming community, accusing the government of forcibly snatching fertile land from them, at heavyily discounted prices as against the prevailing prices in the commercial real estate industry. Also some reputed companies like Bajaj and others have commented against this policy and have suggested using barren and wasteland for setting up of SEZs. Also the suggsted cost of setting up SEZs is under speculation.

A policy was introduced on 1.4.2000 for setting up of Special Economic Zones in the country with a view to provide an internationally competitive and hassle free environment for exports. Units may be set up in SEZ for manufacture of goods and rendering of services. All the import/export operations of the SEZ units will be on self-certification basis. The units in the Zone have to be a net foreign exchange earner but they shall not be subjected to any pre-determined value addition or minimum export performance requirements. Sales in the Domestic Tariff Area by SEZ units shall be subject to payment of full Custom Duty and import policy in force. Further Offshore banking units may be set up in the SEZs.

Answer 2

SEZs are sought to be set up with a lot of tax concession and other infrastructure facilities so that a lot of manufacturing units can be set up for promotion exports, which will help in earning more foreign exchange. On the other hand, now a lot of furore has been raised by the protagonists of the agriculturists against the acquisition of their lands for this purpose. The fact is that the land prices especially in the peripheries of the big cities where the SEZs are sought to be set up have gone up and there is a resistance to their acquisition at the rate fixed by the government. There has been resistance for acquisition of the land even for setting up of satellite towns around a city like Chennai and the government has to give up the plan which was given so much publicity in the elections by the DMK party. Perhaps the government may have to have a rethink on the location of the SEZs rather than giving up the idea of SEZs totally. SEZs are definitely required for export promotion and for creation of more jobs.

Answer 3

Boon obvious - they are like press where india prints dollars to import oil, food and defense weapon.
Why do you have doubts. Let MNCs take some more money home - doesn't means we are getting poorer - we too gain.

Answer 4

those reforms did made China progression right into a wealthy u . s . a .. it particularly is now the 2nd appropriate financial gadget after u.s..yet its highway to achieving this place has many hindrances. so some distance it had controlled effectively, even though it particularly is in no way an uncomplicated one.