Summary |
One of the burning issues that have broken into the headlines during the past three years is the explosively controversial matter of Special Economic Zones (SEZs). With Government of India approving around 550 SEZ projects so far many questions are being raised regarding the relevance of these zones in the long-term economic policy of India. Hence, it would be germane to have a look at the competing arguments as any decision would have repercussions for legions of people in the country. India over the past decade has progressively opened up its economy to effectively face new challenges and opportunities of the 21st century. To compete in the global market, Government of India’s has liberalized export policies, and licensing of technology, and implemented tax reforms providing various incentives. To achieve it three fold objectives of attracting FDI, increasing exports, and accelerating Economic Growth Government announced the introduced of SEZs in its Export Import policy of March 2000. “Industrialization” and “development of infrastructure” are the primary needs of the country at the present moment to accelerate the economic growth. However, these said ventures require vast amount of capital. Domestic capitalists cannot meet this massive demand of capital.
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