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Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
Indian growth with SEZ ???
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Indian growth with SEZ ???

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  • 1. SEZ INDIA (A Policy Review)
  • 2. Contents SEZ India: Ambiguity, Conflict & Protest INTRODUCTION OVERVIEW OF SEZ IN INDIA SALIENT FEATURES OF SEZ, 2005 CRITICAL ISSUES WITH SEZ,2005 CONCLUSION
  • 3. INTRODUCTION Meaning A Special Economic Zone (SEZ) is a geographical delimited area administered by a single body, offering a certain incentive regime to businesses which physically locate within the zone. These policy enclaves are instruments to realize micro, macro and political objectives include employment generation, spurt in economic growth and implementing regional economic development strategies reliable infrastructure and training for unskilled workers.
  • 4. SEZ India: Ambiguity, Conflict & Protest • The Nandi gram SEZ Project a joint venture between State owned West Bengal Industrial Development Corporation and Indonesia’s Salim Group to build a major chemical hub encountered significant resistance from local villagers argued that land had been forcibly acquired by the government at below market rates. • In 2008, Tata Motors the largest passenger and commercial vehicle manufacturer called off their Singur (West Bengal) lowest priced car manufacturing project on the back of widespread protests from local farmers who alleged that land had been acquired by the state government under questionable circumstance.
  • 5. SEZ India: Ambiguity, Conflict & Protest • There is an estimation that more than 200 SEZ projects were involved in land acquisition disputes as of August 2008. • Large scale protest of farmers almost any part of India as • Allegation of land prices below market rate, • Forceful acquisition of land • Keeping in mind the SEZ advantages at Social, Economic and political front, it is imperative to review the INDIA SEZ, 2005 Policy its Amendment and scope of revival.
  • 6. EVOLUTION OF SEZ SEZ made their debut in 1979-80 when China embarked on their SEZ experiment. This concept turned out to be the most successful. Since 1960, India has seen the emergence of several initiatives to boost exports having mixed experience. Notable amongst these are: Export Processing Zone (EPZ Scheme), Export Oriented Units (EOU) Software Technology park (STP), Electronic Hardware Technology Park (EHTP) Export Promotion Capital Goods (EPCG), Advance Licensing and Deemed Exports, Free Trade Zone (FTZ) The Special Economic Zone Act, 2005 get notified in 2006 introduced after Realizing the China’s success story of SPZ.
  • 7. SPECIAL ECONOMIC ZONE AROUND THE WORLD SEZ Introduced in Argentina and Uruguay during 1920, but the rapid development of free trade zones across the world dated from the late 1960; China is often considered the greatest SEZ success. In part as a result of its successful SEZ, China’s GDP and exports grew at annual rate of 10 percent and 11 percent respectively, during 1980. However, SEZs failed experiences have been observed in the Dominique Republic Egypt, Ghana, Guatemala, Senegal and Tunisia. Overall the effectiveness of SEZs have been the fiercely debated subject for the last 50 years. Some feel as successful while others as creating new benefit for the country and as draining government resources.
  • 8. OVERVIEW OF SEZ IN INDIA Approval of SEZ Units Prior to the enactment of SEZ Act, 2005, there were 19 SEZ across India. The government has now approved 581 SEZ with a further 154 with in-principal approvals. 171 of these SEZ are operational today. Multi Company Share (%) in SEZ The IT enabled services capture nearly 61% share of SEZ, while the biotech, pharm, textiles sector and multi-product SEZ have less than 10% shares. Exports The Ministry of Commerce and Industry claimed that the value of exports from functioning SEZ increased from 138 billion rupees in 2003-04 to 2207 billion rupees by the end of financial year 2009-10 which is almost 5 percent of GDP of India. Leading states in SEZ establishment The “In-Principal Approval granted under the SEZ Act, 2005” out of total 49 projects the leading states are Maharashtra:16, Gujarat: 7, Andhra Pradesh: 6. Other states like Uttar Pradesh, Madhya Pradesh and Rajasthan have only 1 project each.
  • 9. SALIENT FEATURES OF SEZ, 2005 Creation of SEZ • The Act states to generate additional economic activity, promote exports of goods and services, create employment opportunities and develop infrastructure all while maintaining the ‘sovereignty and integrity’ of India. • SEZ are also called “tax havens”. There is exemption from custom tariff, Central excise duty, 100% Income tax exemption on export income for the first 5 years and 50% Tax Exemption, for the next 5 years is offered. Time bound Exemption from Custom duty, Central Excise duty and Income tax Finance and exemption. Banking
  • 10. SALIENT FEATURES OF SEZ, 2005 • This ACT provides single window clearance of necessary approvals to the companies like including environmental, construction and employment Single Window clearance. Clearance SEZ-DTA Trade • SEZ ACT states that goods going into the SEZ from DTA will be treated as exports goods from the SEZ into the DTA as import. SEZ, firms enjoy exempt import duties also lead to large scale smuggling from SEZ India to non-SEZ India.
  • 11. SALIENT FEATURES OF SEZ, 2005 Law Enforcement Amendments • Cases will be heard at court appointed by the State Government and the Chief justice of India. Meanwhile, in case there is any inconsistency of this law with other laws than this act would have an overriding effect over others. • In order to address the problem of aggregating large tracts of uncultivable land for setting up SEZ, the Aug’13 amendment the minimum land area requirement in various categories has been reduced by half.
  • 12. CRITICAL ISSUES WITH SEZ,2005 Private Property in India Land Acquisition by Government Implementing Eminent Domain in India Reforming Land Acquisition
  • 13. CRITICAL ISSUES WITH SEZ,2005 Private Property in India • The Indian constitution made an explicit commitments to protect private property. SEZ developers facing hurdles in acquiring land through private party however there are few examples of successful Land transition like The Mahindra World City. • Land acquisition by Government for “Public Purpose” has been challenged in countries like USA and Britain. The dissenting opinion argue that there should be some kind of Land guarantee to generate incidental benefit instead of just Acquisition by saying public purpose. Government
  • 14. CRITICAL ISSUES WITH SEZ,2005 • There is no mechanism for price fixing of land as compensation to the farmers/landowners. Farmers lack proper will of land as its inherited from one generation to next. And finally, notice period Implementing of 48 hours is very short in the country like India. Eminent Domain in India • Indian government brought significant changes. First, provision to compensate to land owners and dependents, second payment must be made within one year, third social impact assessment, fourth for speedy redress civil courts were replaced by a judicial Reforming Land body at the state and national level. Acquisition
  • 15. CONCLUSION  The promotion of national exports and employment generation are the two main expected achievements from this Act, has been fail to impress.  Meanwhile, Gujarat shares 44 percent of total SEZ export in 201011, which is 3158 billion rupees. It again signals that SEZ is preforming at the facilitated region, instead of the region where infrastructure is need to develop.  The Land Amendment bill of 2007, lack to state the comprehensive land use planning process, the difficulty of establishing property rights and the lack of any provision to arrive as “Just compensation” for the owners of the land.  This resulted in huge public protest at a Nandigram, Singur and other part of India.  In fact, the people need to be made stakeholders in the progress of the nation.
  • 16. THANK YOU

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