SPECIAL ECONOMIC ZONES -RATIONALE AND PROSPECTS: Essay

English_Master June 9, 2016 No Comments
SPECIAL ECONOMIC ZONES -RATIONALE AND PROSPECTS A discussion of special economic zones in India will necessarily involve certain subjective assessments of the policy rationale, its impact and implementation, based on the experience of other countries where such policies have been implemented for a long period and the views of experts who have analyzed the implications thereof. Some postulates and predictive thinking may be inescapable in view of the ab­sence of direct local experience. SEZ is not necessarily a term that has a definitive con­notation though, over years and based on the approach of many countries, it has come to signify certain well-identified fea­tures. It is not improper to use SEZ in the place of terms like EPZ (export promotion zone) and FTZ (free trade zone). All these provide or impart slightly differing policy flavours to what is otherwise a ubiquitous concept. Defining features Broadly SEZ has certain defining features such as spe­cial tax incentives; duty free movement of goods and serv­ices; world-class infrastructure; construction intensive nature; export orientation; differentiated economic management like relaxations in certain basic restrictions applicable to the rest of the economy; and free inflow of foreign capital. The above are not official definitions but no one famil­iar with the concept of SEZ, can deny these features....
read more