Impact of Special Economic Zone(SEZ) in India

INTRODUCTION:
Special Economic Zone is the most discussed and disputed topic in India. For the economic development and
to encourage export of various things and to take place in globalization all the countries are contributing
themselves and trying for it consciously and SEZ is one of the parts of this. Special Economic Zone means to
give special facilities to the entrepreneur. In SEZ special facilities are provided to the industrialist, who starts
their business in this sector. Special facilities for taxes, visa will require in this zone.

A special economic zone (SEZ) refers to designated areas in countries with special economic regulations that
differ from other areas in the same country. These regulations tend to contain measures that are conducive
to foreign direct investment. Conducting business in a SEZ usually means a company receives tax incentives
and the opportunity to pay lower tariffs.

REVIEW OF LITERATURE:

The objectives of the study are to overview the effect of Special Economy Zone and suggest options to solve
the problems. The whole paper is based on descriptive research, comparative study and analytical logic
developed through the understandings from various reports, books, journals and online data bases.

OBJECTIVES OF SEZ:
The objectives related with India given as under
1. To develop infrastructure facilities in the country.
2. To increase employment through SEZ.
3. To reduce imbalance in financial development.
4. To improve international trade and get foreign currency with the help of SEZ.
5. To develop the country through the development of industrial and economical growth.
6. To attract the foreign investment.
7. To give the facilities to the internal trade and business with the help of the SEZ.

ORIGIN OF SEZ IN INDIA:

Special Economic Zones (SEZs) Scheme in India was conceived by the Commerce and Industries Minister
Murasoli Maran during a visit to Special Economic Zones in China in 1999. The scheme was announced at the
time of annual review of Export-Import(EXIM) Policy effective from 1.4.2000. The basic idea is to establish the
zones as areas where export production could take place free from all roles and regulations governing imports
and exports and to give them operational flexibility.

SEZ IN INDIA:
The progress and expansion of SEZ in China, Korea, Singapore, Malaysia and America has considered by
Government of India and accepted the concept of SEZ in March, 2000. Then protection of exporters and
demand of traders has been considered by Indian government. Parliament bill of SEZ has sanctioned on 23rd
June, 2005 by the central government. SEZ Act has been applicable to all over India. SEZs are recognized
under financial development and export promotion. As per SEZ Act, SEZ means specially created territory of
free taxes and fees .In these sector industries are established for producing articles and supplying services.
As per Special Economy Zone Act, 2005 and 2006, the definition of SEZ was included articles production,
supplying services, free trade and free ware housing.

Three types of SEZ is as under

a) SEZ for multi-products
b) SEZ for special sector
c) SEZ for port or airport
To declare by government, which type of SEZ has permitted out of above types of three?

Some of the economist and politician are explain SEZ as a way of economical development, but some of them
oppose the SEZ. The well known economist Mr. Raghunath Rajan said that the tax free facilities given to the
SEZ, so give up revenue of the country. The social worker Mrs. Medha Patkar says that the SEZ is only for self
interest section. Mr. Vishwanath Pratapsing said that the government is helping the companies to take over the
land from the farmers. The supporters of SEZ say that the SEZ has promoted and accelerated the development
of economy, to increases infrastructure facilities, employment and export. For entrepreneurs included in SEZ
have provided international grade services and amenities, in fractural facilities as well as financial promotion
schemes, so they have obtained new life. This industrial sector is developed with trade centre, educational
institutions, residences facilities as well as hospital, play grounds and entertainment centers are included. In
new Mumbai SEZs are going to develop for increasing investment included electricity generation centers,
transports facilities etc. so these SEZs are attraction to domestic and foreign investors
EFFECTS OF SEZ:
Due to SEZ industrial sector, export, employment, infrastructural facilities are increasing.
But following problems will created by SEZ
1. Farmers will be landless
2. Increase unemployment
3. The existence of small scale industries is in risk
4. To neglect agricultural sector
5. To lost revenue of government for tax free facilities
6. Capitalism will take birth
7. No rules about the construction
8. To increase financial disequilibrium.
9. Imbalance in environment
10. No protection of the workers
11. The industries in the SEZ was held maximum land are not given clear in the Special
Economy Zone Act

REMEDIES OR OPTIONS:-
SEZ is more important for raised export, employment and financial development of the
country. For equal development of the state, all-round development of the country, the SEZ
is essential. To solve the problems of the SEZ, some changes are necessary. For solve the
problems of SEZ, following options should be considered.
1. To acquire non agricultural land for the SEZ
2. Employment for the local workers
3. Limitation on maximum land holding
4. To save the Small Scale Industries
5. To protect workers rights
6. To minimize land acquisition for the SEZ
7. To Save Environment
8. To fix price of the land
9. Do not injustice on the farmers
10. Acquisition of the land on lease
11. Shares to be given to landholders

CONCLUSION:-
All over the opposition to SEZ, but for financial development, export growth, increase
employment of the country, SEZ is essential. Government has passed special SEZ Act and
implementation is doing. It is necessary to see the SEZ in positive view. SEZ projects should be
started in backward area for development of regional equilibrium. SEZ have been acquired land
from the farmers, government should be done rehabilitation and included them as shareholders of
the SEZ projects as well as the family members of the farmers should be reserved some
vacancies of employment. Employment should be to the local workers, for existence of SSI to
prepare list of articles of SSI, to limitations of maximum land acquired for SEZ etc. options
should be considered by Government then farmers are helping to SEZ and economic
development is done through SEZ.