Special economic zone 07 18_53

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Special economic zone 07 18_53

  1. 1. Special Economic Zone:An Analysis<br />Submitted by:<br />AnshikaSrivastava<br />ChetnaYadav<br />RohitMenon<br />
  2. 2.
  3. 3. HISTORY<br />(2006)<br />(2005)<br />(2000)<br />(1965)<br />
  4. 4.
  5. 5.
  6. 6. Other features:<br /><ul><li>100 percent FDI is permitted for all investments in SEZs
  7. 7. SEZs are required to be net foreign exchange earners.
  8. 8. Goods flowing from SEZ to DTA are considered exports while goods coming from DTA to SEZ are treated as imports
  9. 9. No import license required
  10. 10. Setting up of Off shore banking units(OBU) allowed in SEZs
  11. 11. Allowed to carry forward losses</li></li></ul><li>Life Cycle:<br />
  12. 12. Risk V/s Return for SEZ<br />RETURN<br />RISK<br />
  13. 13. SWOT<br />
  14. 14. SWOT (contd)<br />
  15. 15. SEZ in CHINA and INDIA<br />Comparison<br />
  16. 16.
  17. 17. SEZ 2005-2010<br />The story so far..<br />
  18. 18. FACT FILE<br />
  19. 19. SEZ locations In INDIA<br />
  20. 20. The bitter part of the story..<br />The Ministry of Finance estimated a revenue loss of Rs 175,487 crore from tax holidays<br />The Companies are achieving the prescribed ‘positive’ NFE mainly though domestic sales to DTA<br />SEZ developers using the power to develop real estate<br />Farmer protests due to Improper compensation and destruction of agricultural land.<br />No special increase in FDI<br />
  21. 21. What went Wrong??<br /><ul><li>Lack of proper rules
  22. 22. Lack of Infrastructure
  23. 23. Locational disadvantage
  24. 24. Threat to water and food security
  25. 25. Fertile land destruction
  26. 26. Corrupt credentials of the developers </li></li></ul><li>Suggestions for improvement<br /><ul><li>Strong fiscal disincentive/penalties for SEZs to sell in domestic market
  27. 27. Proper location and size for every SEZ
  28. 28. Proper checking of developers credential and a constant check on their activities.
  29. 29. Proper rules to compensate farmers
  30. 30. Disincentive for SEZ in and around metro cities
  31. 31. Proper co-ordination between various ministries.</li></li></ul><li>Conclusion…<br />SEZ can provide tremendous opportunities for growth.<br />But the current policy and its implementation has lots of flaws.<br />Once these flaws have been addressed SEZs can really change the face of the country<br />
  32. 32. THANK YOU<br />

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