|
India Basics |
|
India Buzz |
|
World Buzz |
|
21 pounds in 21 days |
Special Economic Zones (SEZs)
| India has witnessed a huge rush from private sector companies keen to set up Special Economic Zones (SEZs). The new SEZ law was approved in February 2006, and the government has already received over 100 applications. Before the new legislation, SEZ-related laws were scattered among different acts and rules. The new legislation provides a uniform SEZ policy and comprehensively covers all aspects of establishment, operation and fiscal oversight. The government has also given greater operational freedom to the Development Commissioner as the key authority managing the SEZ. However, the most important change is related to tax incentives. Despite the recent pick-up, India’s share in world goods exports has been very small – at 0.9% for 2005 – due to the widely known gaps in the business environment. SEZs have long been seen as a means for India to create bigger inroads into small and medium scale manufacturing. Improving the business environment on a nationwide basis, providing a competitive platform to India’s entrepreneurs will take time. SEZs, however, can quickly help create high-quality infrastructure in pockets, providing a liberal and supportive business environment, and thus kick-start the much-needed push for manufacturing exports. They allow the government to experiment with the liberalization of labour laws. SEZs can also provide scale-related advantages via the creation of clusters, reducing manufacturing costs. SEZs can be particularly helpful for small- and medium-scale entities that cannot afford to set up captive infrastructure facilities, but can share the costs in a large group. Finally, they can attract foreign capital and technology. |
Back to Indian Economy
Indiasnapshot.com will shortly be introducing the following sections :
Indian History | Indian Geography | Culture of India | Indian History | Ancient India | Medieval India | Modern India | India General | Land and People of India | National Symbols of India | Indian Law and Justice | Defence | Indian Polity | Science | Indian Cuisine | Indian Culture & Heritage | People | Indian Festivals | Indian Dance | Hindi Music | Indian Cinema | Religion | Hinduism | Islam | Christianity | Sikhism | Jainism | Buddhism | Zorastrianism | Indian Art | Indian Literature | Painting | Craft | Vaastu | Siddha | Yoga | Indian Sports | Cricket | Hockey | Tennis | Golf | Kabbadi | Kho-Kho | Addresses of Sports Authorities | Education in India | Top Colleges | Addresses of colleges liberalisation geography reforms five year plans economy india's liberalization business cycle globalisation privatisation sustainable development economic economic growth wto inflation backwardness claimant count macroeconomic monetary policy climate change sustainability india economic times developing countries output gap gdp exports policy money supply business cycles phillips curve agricultural scenario liquidity trap disinvestment interest rates executive resourcing industry of india