You are on page 1of 5

Impact of Special Economic Zone (SEZ) in India

INTRODUCTION:
Special Economic Zone is the most discussed and disputed topic in India. For
the economic development and to encourage export of various things and to
take place in globalization all the countries are contributing themselves and
trying for it consciously and SEZ is one of the parts of this. Special Economic
Zone means to give special facilities to the entrepreneur. In SEZ special
facilities are provided to the industrialist, who starts their business in this
sector. Special facilities for taxes, visa will require in this zone.
“A special economic zone (SEZ) refers to designated areas in countries with
special economic regulations that differ from other areas in the same
country. These regulations tend to contain measures that are conducive
to foreign direct investment. Conducting business in a SEZ usually means a
company receives tax incentives and the opportunity to pay lower tariffs”.
REVIEW OF LITERATURE:
The objectives of the study are to overview the effect of Special Economy
Zone and suggest options to solve the problems. The whole paper is based
on descriptive research, comparative study and analytical logic developed
through the understandings from various reports, books, journals and online
data bases.
OBJECTIVES OF SEZ:
The objectives related with India given as under
1. To develop infrastructure facilities in the country.
2. To increase employment through SEZ.
3. To reduce imbalance in financial development.
4. To improve international trade and get foreign currency with the help of
SEZ.
5. To develop the country through the development of industrial and
economical growth.
6. To attract the foreign investment.
7. To give the facilities to the internal trade and business with the help of the
SEZ.
ORIGIN OF SEZ IN INDIA:
Special Economic Zones (SEZs) Scheme in India was conceived by the
Commerce and Industries Minister Murasoli Maran during a visit to Special
Economic Zones in China in 1999. The scheme was announced at the time of

4.In these sector industries are established for producing articles and supplying services.annual review of Export-Import (EXIM) Policy effective from 1. Korea. Medha Patkar says that the SEZ is only for self interest section. This industrial sector is developed with trade centre. The well known economist Mr. so give up revenue of the country. Vishwanath Pratap singh said that the government is helping the companies to take over the land from the farmers. Then protection of exporters and demand of traders has been considered by Indian government. SEZ Act has been applicable to all over India. The basic idea is to establish the zones as areas where export production could take place free from all roles and regulations governing imports and exports and to give them operational flexibility. SEZ means specially created territory of free taxes and fees . Singapore. free trade and free ware housing. Mr. Three types of SEZ is as under a) SEZ for multi-products b) SEZ for special sector c) SEZ for port or airport To declare by government. play grounds and entertainment centers are included. The social worker Mrs. which type of SEZ has permitted out of above types of three? Some of the economist and politician are explain SEZ as a way of economical development. 2005 by the central government. residences facilities as well as hospital. For entrepreneurs included in SEZ have provided international grade services and amenities.2000. 2000. educational institutions. 2005 and 2006. Malaysia and America has considered by Government of India and accepted the concept of SEZ in March. In new Mumbai SEZs are going to develop for increasing investment included electricity generation centers. the definition of SEZ was included articles production. transports facilities etc. SEZ IN INDIA: The progress and expansion of SEZ in China. so these SEZs are attraction to domestic and foreign investors . As per SEZ Act. As per Special Economy Zone Act. Raghunath Rajan said that the tax free facilities given to the SEZ. but some of them oppose the SEZ. The supporters of SEZ say that the SEZ has promoted and accelerated the development of economy. supplying services. SEZs are recognized under financial development and export promotion. in fractural facilities as well as financial promotion schemes. Parliament bill of SEZ has sanctioned on 23rd June. employment and export. to increases infrastructure facilities. so they have obtained new life.

The existence of small scale industries is in risk 4. employment. But following problems will created by SEZ 1. Increase unemployment 3.EFFECTS OF SEZ: Due to SEZ industrial sector. To increase financial disequilibrium. No rules about the construction 8. Capitalism will take birth 7. export. To neglect agricultural sector 5. Farmers will be landless 2. To lost revenue of government for tax free facilities 6. . infrastructural facilities are increasing.

Acquisition of the land on lease 11. For solve the problems of SEZ. especially agricultural land is a very sensitive issue in India. •Jamnagar Incidence •Nandigram Violence REMEDIES OR OPTIONS: SEZ is more important for raised export. To protect worker’s rights 6. the resistance against SEZ in India became massive when political parties also joined the farmers. the SEZ is essential. But the introduction of SEZ in India has resulted in the dispossession of agricultural land and has affected the livelihood of farmer at large. To Save Environment 8. No protection of the workers 11. all-round development of the country. Limitation on maximum land holding 4. To minimize land acquisition for the SEZ 7. To fix price of the land 9. farmers first protested to safeguard their interests through litigation and court cases challenging the establishment of SEZs. But later on. following options should be considered. In against of this. To acquire non agricultural land for the SEZ 2. Shares to be given to landholders . Do not injustice on the farmers 10. There are millions of people whose livelihood depends on agricultural land. Employment for the local workers 3. some changes are necessary. Imbalance in environment 10.9. 1. To solve the problems of the SEZ. employment and financial development of the country. The industries in the SEZ was held maximum land are not given clear in the Special Economy Zone Act SPECIAL ECONOMIC ZONES SEZ CONTROVERSY: Land. For equal development of the state. To save the Small Scale Industries 5.

SEZ is essential. Government has passed special SEZ Act and implementation is doing. export growth. government should be done rehabilitation and included them as shareholders of the SEZ projects as well as the family members of the farmers should be reserved some vacancies of employment.CONCLUSION:All over the opposition to SEZ. SEZ projects should be started in backward area for development of regional equilibrium. It is necessary to see the SEZ in positive view. . to limitations of maximum land acquired for SEZ etc. but for financial development. Employment should be to the local workers. options should be considered by Government then farmers are helping to SEZ and economic development is done through SEZ. increase employment of the country. SEZ have been acquired land from the farmers. for existence of SSI to prepare list of articles of SSI.