Special Economic Zone (SEZ) Policy Analysis
What is SEZ (Special Economic Zone)?
Special Economic Zone was introduced in India on April 1, 2000. Special Economic Zones or SEZs (SEZs) are specifically defined where the geographical area, where trade, economic activity, production, and other business departments are operated. These areas are developed to encourage business activities by keeping in mind special economic rules and regulations within the country’s borders.
India is one of the top countries which have established such geographical units in particular to promote industry and business activities. India is the first Asian country to set up a special area in Kandla in 1965 to increase exports. It was named Export Processing Zone (EPZ).
Where are the SEZs located in India?
There are currently eight functional SEZs located in India. Santa Cruz (Maharashtra), Cochin (Kerala), Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal) and Noida (Uttar Pradesh).
Why Special Economic Zone (SEZ) is in news?
The Special Economic Zone (SEZ) policy study report of India was submitted to Union Commerce and Industry and Civil Aviation Minister Suresh Prabhu. To prepare this policy study report, the committee was constituted under the chairmanship of Baba Kalyani, chairman of the country’s famous industrialist Bharat Forge Limited. This committee was asked to estimate the SEZ policy and to make it consistent with the standards of World Trade Organization (WTO).
Apart from this, the committee was also given the responsibility of suggesting measures to ensure the maximum use of SEZ’s landless land and suggest necessary changes in the SEZ policy on the basis of international experience.
In addition to this, the responsibility of suggesting the merger of SEZ policy with other government schemes like Coastal Economic Zone, Delhi-Mumbai Economic Corridor, National Industrial Manufacturing Zone, and Textile Parks was also assigned to this committee.
This report says that if India is to be transformed into an economy of 5 trillion dollars by 2025, then in the manufacturing sector there will be a need to make basic changes in the competent capacity as well as in the existing environment related to the services. At the same time, the successes in the field of information technology and related services have to be ensured in other services sectors such as health services, financial services, legal, repair, and design services.
In addition, it has been said in the report that there is a need to assess existing policy frameworks to speed up the pace of development in the manufacturing sector. At the same time, it is also necessary to make relevant policy in accordance with the relevant rules and regulations of the WTO.