The ascendency of India as an economic world power

Well Razib,

SEZ's have their own advantages, so as the disadvantage-, the matter of concern is in India we never encouraged the noble and innovative liberal policies. Its habituated now, to throw mud what comes on the way. One thing i want to say, its clear that government lacks in long term funds which could be better used for infrastructure development of the country, so instead of being a silent spectator, it is encouraging private investment, which is the novel way to utilize the resources of the country. tax incentives is the most ulcerative way to attract the private players. Proper policy towards SEZ's with due care being taken for poor farmers will definitely help India to achieve its economic goal.

razib,
setting up of sez in india has not done by only thinking its positive aspects i agree with u that like every thing as ,it has also merits n demrits but we should look forward as now india is moving on the path of globalization ,so what can be done is same as we are doin in gujrat usin up the drought land bcoz due to sez urbanisation in occuring and we can neglect that it would help economic boost up ,
thank u

SEZ is good if it realy benefits the nation truogh the use of non fertile land for setting up industries for ex we have industrial city in bhopal(mandideep) which is not again a very fertile land and some parts of gurgaon where the lan is not good for agricultural purpose .Again here the modalities have to be seen and stringent laws have to be developed a authority has to created to check the true purpose of FDI .Creation of job good enough but to the extent of selling our own land is something which has to be taken care of after all we have achived our independence after 1000 years of foreign rule including the rule of muslim rule of aibak,khilji mughals and britishers.
devendra

i think there should be ceratin boundry to it as sez helps in development and job oppurtunity but by this , it should take care that farmers doesnt becomes unemployed ......

think there should be ceratin boundry to it as sez helps in development and job oppurtunity but by this , it should take care that farmers doesnt becomes unemployed ......

In 1947, when India got independence India’s share in the world trade was around 2.4 per cent. At that time, India was exporting only the agricultural based traditional commodities like tea, coffee, cotton, jute, tobacco, coir and oil cake items etc. After independence, it came down to .5 per cent and remained same for four decades. Now we are exporting not only traditional items but also highly sophisticated items in the international markets like ready made garments, jems and jewellery, engineering goods, leather products, computer software and hardware items, electronics and electrical items, pharmaceutical items etc. Still our share in the world trade is less than one percent only. In 1950s almost all the newly independent economies in Asia followed the policy of import substitution to protect their infant industries. None of the countries including India gave importance to exports. But in 1980 all these countries started producing more than what is needed for them. So they started looking for a market for their products outside the country. Some of the countries like Taiwan, South Korea, and Hongkong became successful in capturing international markets for their products since their products are very cheap. India also realized importance of exports and started Export Processing Zone in Khandla in the year 1967. Later on seven more EPZs were established and a number of Export Promotion Councils were established. At present, there are a large number of Export Promotion Councils for each and every non-traditional commodities. Government of India also started giving a lot of incentives and tax concessions to Export Oriented Units (EOU), Still we are not able increase our share in the international markets. At the same time, a communist form of Government like China opened its territories for foreign investment in the name of Special Economic Zones. Now it has 6 special economic zones and more than 120 free trade zones. They attract foreign investment worth 60 billion U.S $ that is more than 10 time of India’s foreign direct investment. It is possible only because of SEZs in China. That is why China reached more than double digit growth rate at present. India has a lot of targets to be achieved like 9 per cent GDP growth rate, generation of 10 million employment opportunities every year, reduction of poverty from 260 million to 200 million by the end of 11 Plan period, improvement of infrastructure facilities etc. To achieve all these things we need SEZs. There are problems in acquiring land for the SEZs. Let the developers concentrate on acquiring non-paddy fields and also the single coped area. The landholders and also non-land holders should be compensated both in money terms and also by providing employment to each family for giving up their lands and their livelihood. Industrialization of our country is our basic purpose and if it can be achieved through FDI let us welcome SEZs wholeheartedly. Jus now I have completed writing a book on “Special Economic Zones in India” . I am doing final touches. I have included all the points related to merits and demerits of SEZ and it will be in a book form within a month.

Dr.P.Arunachalam,
Reader,
(Head from April 2004 to April 2007,)
Department of Applied Economics,
Cochin University of Science and Technology,
Kochi-22. Kerala State.

It is silly to think of SEZ in isolation.

SEZs are nothing but a cooked up solution to problems created by us for us and of us.

It is important to remember that Innovation (both incremental and brilliant) occurs in unknown places and areas. And to drive industries innovation is the foundation.

To encourage innovation a broad, across the spectrum policy has to be devised which will trigger innovation.

SEZs are places created in the minds of the psuedo intellectuals and politicians with no concept of skills and innovation. These will be implemented by Real estate developers and companies who have lots of money and are already successful. For instance, apart from more turnover do we hear great innovations from Infosys and Wipro or TCS ?

SEZ is another trick played on the poor and middle class of the country.

Dr. Arunachalam has rightly pointed out, I would also like to say that SEZs are good for Indian growth. Regarding development, SEZs can be of immense value if the affected huseholds and landowners are adequately compensated, not only monitorily, but also by building their capacities, so that they have the strength to develop their own alternative source of liveihood. I think it is good to give a man a fish, but it is best to teach a man how to fish.

Hence, SEZs if they focus on over all development of the zone, then can be of immense boon to the country.

please comment whether the recent outbreak of violent protest against SEZ will affect indias export potential