Special Economic Zones (SEZs)

Why is there so much hype about SEZ in the median recently? Well for once it a new experiment undertaken by the central government of India like the five year plans. SEZ was first introduced by People’s Republic of china with an aim to increase foreign investments. Many countries have plunged into this area but most of them have failed. Like many others India has also declared a total of 63 SEZs in India. Initially govt. proposed of having a total of 500 SEZ in India (Please don’t laugh they have skipped many). However only 220 of them the implementation process have started. SEZs experience flexibility in policies and laws allowing SEZs to utilize a special economic management system.
Special tax incentives for foreign investments in the SEZs.
Greater independence on international trade activities.
Economic characteristics are represented as "4 principles":
Constructions primarily relies on attracting and utilizing foreign capitals
Primary economic forms are Sino-foreign joint ventures and partnerships as well as wholly foreign-owned enterprises
Products are primarily export-oriented
Economic activities are primarily driven by market
You might have read about Singur (West Bengal) where TATA motors is starting up a plant to produce a 1Lakh car for Indian customer. Hence you might have also read about Mamta Banerjee and her hunger strike against this establishment. I sometimes wonder that these politicians will go up to any extent to be highlighted in the media. After looking at the pros and cons of the situation I couldn’t find any reason good enough to fight against it. Bengal as we are aware of tops the list of poor state in India. A revolution like this will not only develop Singur but will help in the over all development of the state. This step will not only generate employment but will also improve the standard of living of that region. The land that was taken from the farmers was not that much fertile that the govt. did a sin occupying it. The farmers are getting compensation and employment what more can they ask for.
Let’s talk about the other SEZ like Chennai, Santa Cruz (Mumbai) nothing substantial have been achieved there till yet in the past 5 years of their creation. However one should not criticize the govt. they are doing there best in helping this county to grow. They might be slow but they are doing something. I guess when comparing the growth in any other country it would have taken 7- 8 years for a SEZ to fully flourish but in India we will take may be 20- 25 years. But we will achieve it. We have a target a dream no matter how distant it is we will fulfill it.