Special Economic Zones (SEZs) in India
By Geeta Das
Special Economic Zones (SEZs) are geographical regions in a country which are subject to economic laws that are more liberal than the other economic laws in that country. An SEZ can be deemed as a foreign territory for the purposes of trade operations, duties, and tariffs. In recent years, the success of China's unprecedented economic growth has been attributed to the strategy of developing SEZs. Encouraged by China's success, many developing countries, including India, are trying to replicate this new strategy of fast-track development. India believes that SEZs will create thousands of skilled and semi-skilled jobs in export oriented industries and services and ensure a double-digit growth rate in the future. The recent initiative of the government of India to set up SEZs on the pattern of China is a welcome change in the strategy for economic development and export promotion. The move is a bold departure in the basic approach to development efforts, and it is an acknowledgement of the potential of export-led development strategy. This book describes and examines the policy initiatives pertaining to SEZs in India. It also presents a comparative view of the economies of India and China with focus on SEZs as vehicles of faster economic development.
Publication Date: 6/30/2009