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Special Economic Zone, Land Acquisition, and Impact on Rural India

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  • Sazzad Parwez
  • Vinod Sen

Abstract

This article examines the dimensions of land acquisition with respect to establishment of economic zones across India. The enactment of Special Economic Zone (SEZ) Act 2005 allows the government to transfer the land acquired for public purpose under the Land Acquisition Act to the private companies for development. For private firms, land turning into most significant incentive for being part of SEZ scheme and profit maximization. It has been observed that large part of acquired land ends up in the hands of the real estate companies rather than intended productive sectors of industry and infrastructure. Land is the principal source of livelihood in an agrarian economy. Forcible acquisition and transfer of land to corporates leads to large-scale unemployment and displacement, especially when large part of tract remains unutilized. It raises many questions on objective and process of establishment of SEZs. The absence of land use the policy is primarily culprit for faulty diversion of land agriculture along with underutilization of available land. The extreme nature of these SEZs needs to be analyzed through proper policy making.

Suggested Citation

  • Sazzad Parwez & Vinod Sen, 2016. "Special Economic Zone, Land Acquisition, and Impact on Rural India," Emerging Economy Studies, International Management Institute, vol. 2(2), pages 223-239, November.
    • Handle: RePEc:sae:emecst:v:2:y:2016:i:2:p:223-239
    DOI: 10.1177/2394901516661104
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    References listed on IDEAS

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    1. Ghatak, Maitreesh & Mookherjee, Dilip, 2014. "Land acquisition for industrialization and compensation of displaced farmers," Journal of Development Economics, Elsevier, vol. 110(C), pages 303-312.
    2. Pandey, V. K. & Tewari, S. K., 1996. "Regional Agricultural Land Use - A Sectoral Aggregate View," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 51(1-2), June.
    3. Claudia Astarita, 2013. "Indian Special Economic Zones: The Difficulties of Repeating China’s Triumph," Working Papers id:5253, eSocialSciences.
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    Cited by:

    1. Sabina Yasmin & Ruhi Begum & Muhammad Mustofa Kamal, 2020. "Governance in Land Acquisition Process: A Study on Shreehatta Economic Zone, Moulovibazar," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(2), pages 123140-1231, December.
    2. Sina Hardaker, 2020. "Embedded Enclaves? Initial Implications of Development of Special Economic Zones in Myanmar," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(2), pages 404-430, April.
    3. Tran Tuan NGUYEN & Gábor HEGEDŰS & Tien Long NGUYEN, 2019. "Effect of Land Acquisition and Compensation on the Livelihoods of People in Quang Ninh District, Quang Binh Province: Labor and Income," Land, MDPI, vol. 8(6), pages 1-10, June.

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