Introduction History Types of SEZ Benefits to country Current scenario of India v/s China India v/s China comparison Problems in India Conclusion Reference

1. SEMINAR REPORT
ON
SEZ INDIA V/S CHINA

2. CONTANTS....
• Introduction
• History
• Types of SEZ
• Benefits to country
• Current scenario of India v/s China
• India v/s China comparison
• Problems in India
• Conclusion
• Reference

3. INTRODUCTION
• India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ)
model in promoting exports, with Asia's first EPZ set up in Kandla in 1965. With a view to overcome the
shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-
class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments
in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.

4. HISTORY OF SEZS IN INDIA
• the seeds of the basic concept of Special Economic Zone (SEZ) were sown in the mid sixties. Further, the
History of SEZs in India suggests that the basic model of the present day Indian Special Economic Zone
was structured with the establishment of the first Export Processing Zone (EPZ) at Kandla in the year
1965.
• The modern day Special Economic Zone came in to existence because the economic reforms
incorporated in the early 1990s did not resulted in the overall growth of the Indian economy. The SEZ
policy of India was devised to act as a catalyst to promote the economic growth attained in the early
1990. The economic reforms incorporated during the 1990s did not produce the desired results.

5. TYPES OF SEZ
Special
economic
zones
Free trade
zones
Export
processing
zone
Enterprise
zone
Single
factory
Free ports
Specialized
zone

6. BENEFITS TO COUNTRY
• It attracts foreign direct investments along with domestic investments.
• It generates foreign exchange by boosting exports.
• It is a platform where the indigenous companies could collaborate with foreign companies to import
technology to the country.
• Unlike the industrial corridors, SEZs have sound infrastructure with only thirty percent of the area
involved in production activities. Thus, social environment, human resource development and
environment is taken care of.

7. CURRENT SENICRO (INDIA & CHINA)
• India and China have conducted second joint military exercise “Sino India Cooperation 2016” in Ladakh
region along the Line of Actual Control (LAC) in Jammu and Kashmir. The exercise compliments Hand in
Hand series of India-China joint military exercises that aims to enhance cooperation and maintain peace
and tranquility along border areas of both countries.
• Chinese SEZ initiative is government driven; Indian SEZs are driven by private sector. Dr. J J Irani, former
CMD of Tata Steel and currently one of the powerful Directors on Tata Son's is of the opinion, "India
should also go slowly like China has done". Mohandas Pai, Executive Director, Infosys Technologies said,
“We should look at entire districts, with a port and a hinterland for SEZ.

8. INDIA VS CHINA COMPARISION
• Indian policymakers' ongoing fascination with special economic zones was inspired by China's roaring
success with this enclaves of galvanisedproduction. New Delhi has sanctioned close to 200 SEZs. Guess,
how many SEZs China has since kicking off the policy in 1979? Exactly six: Shenzhen, Zhuhai, Shantou,
Xiamen, Hainan and Pudong.
• Is India getting something wrong in its SEZ policy, or should we merely conclude that India will soon be
33 times as successful as China?

9. PROBLEMS IN INDIA
• SEZs will displace and uprootlakhs of farmers and send land prices skyrocketing.
•
• The SEZs make the government forgo revenue it can ill-afford to lose, they also offer firms an incentive to shift
existing production to the new zones at substantial cost to society.
•
• In the name of free trade and inviting global investors, we are going to experience the meagre benefits rather
than mega profits to our nation, as SEZs are meant to create incentives for exports through huge tax-breaks
•
• SEZs are duty-free enclaves and considered "foreign territories" for the purpose of trade operations and tariffs
•
• Units located in SEZs can import goods without licence or duties

10. CONCLUSION
• For more than 50 years, SEZs have continuously been used as a development tool because of the power
they possess. Shielded from local politics, they have offered the perception of freedom and flexibility to
nations looking to experiment with radical policy. The lack of local governance that facilitates freedom
also facilitates unfettered exploitation of our environment and society. However, “environmental issues
are ALL social,” said Ravi Agerwal in a lecture I attended in Delhi (Agerwal, 2/14/11). Economic issues
are all social as well. So, if the QOL of the majority has not improved, then development has not
occurred.