Page 290 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 13: Special Economic Zones

Notes

Task Visit the Special Economic Zone website and study the various provisions for
setting up a unit in one of the SEZs.
Self Assessment

Fill in the blanks:
11. Once the Board of Approval approves an SEZ and the .............................. Government has
notified the area as the Special Economic Zone, units can be set up in the SEZ.
12. SEZ Authority monitors the overall performance of SEZ vis-à-vis export performance and
......................... improvement in the area.

13. Most of the infrastructure facilities for SEZs tend to be ............................
14. The prime motive of attractiveness of SEZs is .................... cost of operations due to good
infrastructure and allied services.

15. The existing SEZ policy does not seem to be in tune with Indian SMEs, which contribute
almost ...................... of India’s foreign trade.

13.5 Summary

In conclusion, we can say that India should continue its policy of SEZs in order to derive
benefits of factors such as availability of a large and skilled workforce, intrinsic comparative
advantage in several industries, a strong policy framework, availability of complementing
and supporting ancillary industry, an already buoyant export sector and vast local markets.
It is expected that through SEZs, India can combine these factors into a powerful alchemy
to attract the best technology and large inflows of foreign investment.
If domestic regulation is strengthened further, including looking at prevalent rigid labour
laws, supportive bureaucracy, cutting down red tape, improving overall infrastructure,
etc.
SEZs could automatically become a panacea for all economic problems and diseases.

Differences of opinions will always be there on the incentives, benefits and facilities to
SEZs, but these shall not hamper India’s march towards emerging as global hub for
manufacturing, trading and services and regaining our past glory of being export champions
by 2020 by garnering 5% share in world trade.

13.6 Keywords

Export: A function of international trade whereby goods produced in one country are shipped to
another country for future sale or trade.
Import: A good or service brought into one country from another. Along with exports, imports
form the backbone of international trade.

SEZ: SEZ is a special geographical area created within the country with economic laws that are
different from a country’s typical economic laws, with the major objective of attracting foreign
investment to the country

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