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SEZs and Other Industrial Clusters: Why Incentives Have Not Been Successful in Developing Manufacturing in India?

In: Special Economic Zones in India

Author

Listed:
  • Arpita Mukherjee

    (Indian Council for Research on International Economic Relations)

  • Parthapratim Pal

    (Indian Institute of Management)

  • Saubhik Deb

    (Economist and Independent Consultant)

  • Subhobrota Ray

    (Economist and Independent Consultant)

  • Tanu M. Goyal

    (Indian Council for Research on International Economic Relations)

Abstract

The central and the state governments in India have enacted over 300 policies and schemes, most of them for promoting the growth of the manufacturing sector. The majority of the cluster-based schemes can be dovetailed with incentives under the SEZ policy, implying that an investor can avail of the benefits under more than one scheme and/or policy. However, despite subsidies, grants and other incentives, manufacturing has not grown as expected. This chapter examines some of the cluster-based schemes and how these can be dovetailed with the SEZ policy. It also makes policy recommendations on how to support the growth of the manufacturing sector in India.

Suggested Citation

  • Arpita Mukherjee & Parthapratim Pal & Saubhik Deb & Subhobrota Ray & Tanu M. Goyal, 2016. "SEZs and Other Industrial Clusters: Why Incentives Have Not Been Successful in Developing Manufacturing in India?," India Studies in Business and Economics, in: Special Economic Zones in India, chapter 0, pages 153-170, Springer.
    • Handle: RePEc:spr:isbchp:978-81-322-2806-6_7
    DOI: 10.1007/978-81-322-2806-6_7
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