What do you think about Special Economical zone in INDIA?

Question

Is there any necessity of SEIZE in INDIA or not?

Answer 1

Special economic zone is a particular area inside a state which acts as foreign territory for tariff and trade operations. Govt. provides tax exemption (IT, Excise, customs, sales etc.), subsidised water and electricity etc.

SEZ can be sector specific or multi product sez. It helps in the development of infrastructure of the area around the SEZ, provides employment to ppl, makes the exports more viable. All this will helps the country's products to become mor competitive vis-a-vis providing all round development of region.

It should be noted that if 100 acres are alloted for SEZ, then only 30-35% of area is used for setting up plants. rest of the area is used to provide housing facilities, malls, multiplexes etc.

Also Tax exemption is for specific period say for 10 yrs or so.

Although u hv not asked but think where the land for SEZ will come from as land is a finite source. So, there are controversies regarding snatching of arable/cultivated land or buying land at very discounted artes from farmers or poor ppl and then selling it to corporates at exorbitant prices. There's much more to SEZ.

Grab today's copy of Economic times (if u r an Indian) and go to editorial page. there is interesting discussion over this issue.

Also, mamta also has some point in opposing the coming of TATAs plant. She is not 'absolutely' stupid (note the word absolutely :)

Answer 2

SEZs  give lot of encouragements to industries. Moreover it creates

jobs opportunities for unemployed. Definetly  if India has to improve

economically by G.D.P. then we need  lot of industries for which S.E.Z

will help certainly.

Answer 3

India though the tenth industrial nation has certain very serious lacunae (as industrial country). On the whole its industries in key basic sectors is very obsolete or non-existent. Only there is an eye-catching automobile industry & FMCG etc. India never ever produced an ounce of Silicon metal so vital for her Electronics base, while South Korea, Philippines, Indonesia  with Taiwan leading the pack are at it for the last 5 decades (I have deliberately dropped Japan as it is in a class in itself). Whatever strategic materials that are being produced are being produced by outfits like Atomic Energy department. Thus this sector of economy have the general public or commercial interests facing a 'no entry' board either by default or choice. It is lop-sided and faulty. Lately the policy formulators woke up (!) to this reality. The only way to entice the leading global big players who are least interested (with their hands full in SE Asia) is to throw some sweeteners like SEZs. States are falling head over heals to attract such global producers. Nothing wrong there as long as we get our efforts' worth of new(latest) technologies. A 'car' manufacture by a local industry is not my idea of an SEZ, though. As always is the case the 'babus' of New Delhi 'bhavans' are no match to deal with this foreign operators but that is all the country can muster!

I wish UPSC takes up a special drive to bring in a special breed of sophisticated, management trained civil servants in response to the historically poised moment of demand. That is the implementation part. But as a policy SEZ is a good move. The envious who see the land being given away cheaply, the politician as a rabble-rouser with a political point to make have to be carried along too. It is inevitable but the process should be judicious.