Free Essays for Competitive Exams-Special Economic Zones in India

SEZ in India

(Special Economic Zones in India)

    India was one of the first countries in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. 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 2000.

   The SEZ Act, 2005, was an important bill to be passed by the Government of India in order to instill confidence in investors and signal the Government's commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through their establishment, a comprehensive draft SEZ Bill prepared after extensive discussions with the stakeholders.

  The main objectives of the SEZ Act are:

(a) Generation of additional economic activity 

(b) Promotion of exports of goods and services; 

(c) Promotion of investment from domestic and foreign sources; 

(d) Creation of employment opportunities; 

(e) Development of infrastructure facilities;

It is expected that this will trigger a large flow of foreign and domestic investment in SEZs, in infrastructure and productive capacity, leading to generation of additional economic activity and creation of employment opportunities.

      As on 17.07.13, a total 576   SEZs have  been approved by the Government with Andhra Pradesh having 109 SEZs. During this time, 102 SEZs have been received green signal in Maharashtra followed by Tamilnadu 67, Karnataka 61 and UttarPradesh 31. Among the Eastern states, West Bengal got 18 SEZs approvals.

Under the approved SEZs, 353 units have been set up in Semi-conductor group, 21 Engineering, 32 Bio-Tech and 23 Pharma and Chemical group. Gems and Gewellery sector also occupies a  largechunk of SEZ section with 13 units.

There are six Special Economic Zones operational in India. They are,

Kandla Special Economic Zone

Cochin Special Economic Zone- 93 units are operational under this zone

 Madras Special Economic Zone

Visakhapatnam Special Economic Zone- 106 units are operational under this zone

Falta Special Economic Zone- Six units are operational under this zone

 Noida Special Economic Zone- 20 units are operational in this zone

The total exports from the SEZs during the last seven years and the current financial year are as under:

Financial Year	Exports from SEZs  (Value  in Rs. Crore)
2006-2007	34,615
2007-2008	66,638
2008-2009	99,689
2009-2010	2,20,711
2010-2011	3,15,868
2011-2012	3,64,478
2012-2013	4,76,159
2013-2014*	1,13,299