SEZ-Undue Emphasis On IT

September 1, 2007	(1 votes, average: 5 out of 5)  Loading ...
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Special Economic Zones (SEZs) have been a subject of hot debate in India for quite a lot of time now. Some call it a potential trigger to the economic growth story of India while some call it the source of mass conflicts; Nandigram as a stark example.

Well, social theories apart, we can’t really say that the concept of SEZ in India should have been the way it is.

As on date, about 362 SEZs are approved by the government of India. Out of this an overwhelming majority of 225 SEZs goes to the credit of IT and IT enabled Services (ITeS) companies.

It is a matter of amazement that six out of every 10 SEZs to be developed in the country will be focused on IT; a sector that has grown by about 250 percent in the past 3-years.

Well, the SEZs are meant for promoting exports, earning foreign exchange and improving the business environment by providing incentives and privileges to the companies that operate from these zones.

However, the economists themselves say that there has been an over-emphasis on the IT sector as far as the development of SEZs in India is concerned.

Indian IT companies have proved their mettle in global arena without much of support from the government side. If we consider another perspective, we find that their business is already export-oriented and running successful from earlier only, when the concept of SEZs in India had not even evolved in India.

So, why there is so much of focus on industry that is able to manage its growth and operations in its own way, experts question.

Historically, the idea of SEZ is said to enter in India from China, which astounded the world business community by clocking exports worth US$12 billion from its SEZs in year 2004.

Although the matter of concern is that the Indian policy-makers have not been paying due attention to the other sectors like pharmaceuticals, automobiles, textiles and telecom etc. that have all the potential to push India into a league of developed countries in the times to come.

News Published Under:   Special Economic Zones |

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