Many people in India think that setting up many Special Economic Zones (SEZs) is the best solution for India for attracting foreign investment. India is trying desperately to attract foreign investment so it can create thousands of new jobs. For doing so, India needs to develop infrastructure and SEZ seems to be the best answer in this regard. I was going through a report titled ‘India's industrial zones get mixed welcome’ in IHT. Here, Saritha Rai wrote about the support and opposition to SEZs in India.
The supporters of the concept of SEZ argue that since India cannot afford to invest a huge amount of money to develop the infrastructure of the whole India, SEZ is the only viable option. They also argue that SEZs are free of the negative aspects of Indian bureaucracy. They feel that if India wants to match Chinese economic development then there is no alternative to setting up SEZs and attract local and foreign investment.
Not everyone is happy with these arguments. Those who are against it argue that giving tax breaks to SEZs is not a good idea. They are also against acquisition of fertile agricultural land as it will make many farmers landless.
What is your idea about it?
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