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Special Economic Zones for Rapid Industrialization and Regional Development: Progress and Concerns

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  • D Nagayya
  • T V Rao

Abstract

The paper analyzes the formally approved, notified, and approved in-principle Special Economic Zones (SEZs) in India in a number of ways for the period 2006 to mid-June 2009. It outlines the differences in approaches of Export Processing Zones (EPZs)/Export-Oriented Units (EOUs) and SEZs, and presents the features of SEZ policy with respect to SEZ developers and SEZ units, with reference to multi-product, multi-service and sector-specific SEZs in normal states and special category states/union territories. Some current issues, with brief review of earlier approaches, and safeguards to be put in place regarding SEZs, have also been outlined in this paper. Geographical and sector-wise concentration of SEZs, size of area acquired for different product groups, division of zone into processing and non-processing area indicating proportions, large-scale acquisition of fertile farm land through forceful means, use of cultivable land for SEZs, land acquisition process, compensation payable to displaced persons, a comprehensive rehabilitation and resettlement policy, protection to the labor, and environmental issues have been discussed in this regard. Some of the other aspects like absence of relocation of enterprises from outside SEZs into SEZs, and need for level playing field between enterprises located within and outside SEZs, particularly EOUs, have also been considered.

Suggested Citation

  • D Nagayya & T V Rao, 2010. "Special Economic Zones for Rapid Industrialization and Regional Development: Progress and Concerns," The IUP Journal of Managerial Economics, IUP Publications, vol. 0(1 & 2), pages 93-111, February .
    • Handle: RePEc:icf:icfjme:v:08:y:2010:i:1&2:p:93-111
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