This document provides a SWOT analysis of Special Economic Zones (SEZs) in India. It notes that SEZs were established to promote exports and attract foreign investment by having more liberal economic laws than the rest of the country. The strengths of Indian SEZs include a large domestic market, low labor costs, and established capabilities in various industries. Weaknesses include inadequate support, labor issues, inappropriate locations, and infrastructure bottlenecks. Opportunities exist to leverage SEZs for infrastructure development and investments in core industries. Potential threats include increasing competition from other countries and changes in trade patterns. The conclusion is that SEZs are expected to boost investment, economic activity, and job creation.

1. Special Economic Zone (SEZ)
SWOT Analysis
Made By-
SONIA MEHTA
PGD11106

2. History of SEZ
• 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 the same intentions and view to attract
larger foreign investments in India, the
Special Economic Zones (SEZs) Policy was
announced in April 2000.

3. SEZ ?
• A Special Economic Zone is a
geographically bound zones where the
economic laws in matters related to export
and import are more broadminded and
liberal as compared to rest parts of the
country. SEZs are projected as duty free
area for the purpose of trade, operations,
duty and tariffs. SEZ units are self-
contained and integrated having their own
infrastructure and support services

5. OBJECTIVE of the SEZ Act
 Generation of additional economic activity
 Promotion of exports of goods and services
 Promotion of investment from domestic
and foreign sources
 Creation of employment opportunities
 Development of infrastructure facilities

6. List of Developers
who have set up SEZs
 Nokia SEZ in Tamil Nadu
 Quark City SEZ in Chandigarh
 Flextronics SEZ in Tamil Nadu
 Mahindra World City in Tamil Nadu
 Motorola, DELL and Foxconn
 Apache SEZ (Adidas Group) in Andhra
Pradesh
 Divvy's Laboratories, Andhra Pradesh
 Rajiv Gandhi Technology Park, Chandigarh
 ETL Infrastructure IT SEZ, Chennai
 Hyderabad Gems Limited, Hyderabad

7. SWOT Analysis for Indian SEZs
Strengths
• A large and growing domestic market.
• Growing middle class with purchase
power
• India’s large English speaking
workforce

8. Strengths
• Relatively low labour costs
• Worldwide acceptance of capabilities in
fields like:
1. Pharmaceutical manufacturing &
research
2. Clinical trials
3. Manufacturing auto parts
4. Engineering designing & consultancy,
IT
5. Entertainment

9. Weaknesses
• Inadequate institutional support
• Labour reforms
• Inappropriate locations
• Infrastructure bottlenecks –
connecting infrastructure like
Roads leading to SEZs.
• Political changes

10. Opportunities
• To use SEZs to catalyze infrastructure
development.
• New small ports & airports are also
being developed keeping SEZ concept
in mind.
• Realistically establish competitive
advantages in SEZs.

11. • A large NRI base who have traditionally
invested less in Greenfield
development in India.
• Lower the high transaction /behind the
border costs to exporters.
• Tap the advantages of WTO/increase
India’s small share of world trade.

12. Opportunities
• To increase investments in core strength
areas like IT and software products and
services.
• An alternative manufacturing base,
particularly compared to Chinese SEZs.

13. ‘Threats’
• Loosing edge of low labour costs -
many countries are competing.
• The pattern of buying & selling may not
continue. With relocations of industries
in other third world countries, new
competitors will emerge.

14. CONCLUSION
It is expected that this will trigger a
large flow of foreign and domestic
investment in SEZs, in infrastructure
and productive capacity, leading to
generation of additional economic
activity and creation of employment
opportunities.

15. THANK YOU