A PROJECT REPORT

ON
SOCIO-ECONOMIC IMPACT OF SEZ
IN
GLOBAL BUSINESS MANAGEMENT
SUBMITTED TO:
Ms. MUNIRA HABIBULLAH
Submitted by:
SUSHANT PATIL (21)
RIKEN TANDEL (30)
NIRAJ PATEL (19)
SPECIAL ECONOMIC ZONES
 A Special Economic Zone (SEZ) is a geographical
region that has economic laws that are more liberal
than a country's typical economic laws.
 The category 'SEZ' covers a broad range of more
specific zone types, including Free Trade Zones
(FTZ), Export Processing Zones (EPZ), Free Zones
(FZ), Industrial Estates (IE), Free Ports, Urban
Enterprise Zones and others.
 The objectives of setting SEZs are aimed at boosting
exports and attracting investments in various
export-oriented manufacturing and service sectors.
Contd….
 Several fiscal incentives are offered to units
setting up operations in SEZs which coupled with
a business friendly operating environment, would
result in increasing levels of productivity, with a
resultant growth in investments & exports.
 The zones offer numerous benefits such as:

1. Tax incentives.
2. Infrastructure and Utilities.
3. Simplified procedures.
4. Provisions better suited for foreign investors
than domestic economy.
SOCIO-ECONOMIC IMPACTS OF SEZs
 POSITIVE IMPACT OF SEZs
1. Setting up SEZs in such areas can have many
positive effects on these situations as listed below:
2. Changing the current occupation pattern
3. New employment opportunities (local recruitment)
4. Self-employment with the compensation money
5. Better infrastructure and living conditions
6. Contract opportunities for local population
7. Further self employment opportunities through
training
8. Bringing the rural society in the mainstream
  NEGATIVE IMPACT OF SEZs
Implementation of such a large scale venture
will most definitely have negative effects as
well. These negative impacts are of economic
as well as social nature. We now list the
possible negative effects that they can have:
1. Financial losses to government
2. Land grabbing
3. Environmental impact
4. Clusters of development
5. Employee working conditions
RESEARCH METHODOLOGY
 Objective of the study:
To study the impact of SEZ on various socio-
economic dimensions of globalization in India.
 Research method:
We have used descriptive research method for
our study.
 Sample size:
We have taken the data of only operational SEZ
of India and have not included the expected
data of the upcoming SEZ.
Contd….
 Data collection:
We have used the secondary data available on
the site of “Ministry of Commerce & Industry”.
 Limitations of the study:
1. As it is based on secondary data, so the result
may not be completely true.
2. There are also various other factor affecting the
socio-economic dimensions of globalization.
3. We have considered only the impact of SEZ on
socio-economic dimension.
INVESTMENT IN SEZ

•From the above data

we can see that prior
to SEZ act of 2005 the
investment was very
less before 2005 &
immediately the next
year the investment
increase by 45%. Year Investment(CRORES) GROWTH RATE

•Because of the 2003-2004 30076 ----------

recessionary effect the 2004-2005
2005-2006
35629 18.46

FDI Inflows was less

40357 13.27
2006-2007 58657 45.35
which lead to the 2007-2008 67347 14.82

decline in the
2008-2009 98498 31.63
2009-2010 124000 25.9
investment in the SEZ.
 600000

EMPLOYEMENT IN 500000

SEZ 400000
2003
2004
2005
300000
2006

•SEZ has generated 200000 2007

lot of employment
2008
2009
opportunities. The
100000

figures given above 0

include only direct employement

employment. year employment growth rate

•The data shows 2003-2004 95407

that employment
2004-2005 1,00,650 5.5
2005-2006 1,780,00 76.9
generation growth 2006-2007
2007-2008
200459
2,80,832
12.6
40.1
rate was much 2008-2009 3,87,439 38
higher in the year 2009-2010 490000 26.5

2005-06.
WOMEN EMPLOYMENT IN
SEZ

•From the figure we

can say that
because of the SEZ
women employment
got drastic increase.
•In the year 2005-
2006 there was
major increase in year women employment growth rate

women employment
2003-2004 28672 18.47
2004-2005 35230 22.9
•High pay-scale, 2005-2006 56960 61.7

easy transportation
2006-2007 70161 23.2
2007-2008 98290 40.1
facility are major 2008-2009
2009-2010
154975 57.67

factors for that.

186200 20.15
 ECONOMIC IMPACT OF SEZ
Regression Statistics
•Here, we have seen the
impact of economic factors Multiple R 0.90336691
of SEZ on the GDP of India. R Square 0.816071773
•From, the regression
analysis the impact on GDP Adjusted R
is given by the following Square 0.540179433
regression equation
GDP = 54.62 – 0.27* Standard Error 11.68792632
Investment – 14.66* Inflation Observations 6
+ 51.37 * Export   Coefficients
Intercept 54.61660642
Investment -0.270113457
Inflation -14.6595317
Export of SEZ 51.37395177
SOCIO IMPACT OF SEZ
Regression Statistics
•Here, we have calculated the socio
Multiple R 0.722949427
impact of SEZ on Indian GDP. R Square 0.522655875
•From, the regression analysis the Adjusted R
impact on GDP is given by the Square -0.193360314
following regression equation Standard Error 18.82907843
GDP = 119.67 – 0.93* Women Observations 6
employment – 66.68* Direct
employment + 0.48 * population
  Coefficients
Intercept 119.6686805
Women
employment -0.930509373
Direct
employment -66.68293511
Population 0.482121712
FINDINGS
 The regression equations say that for every 1% increase or decrease of the
independent variable shows the increase or decrease of dependent variable.
For e.g.
GDP = 54.62 – 0.27* Investment – 14.66* Inflation + 51.37 * Export
This equation shows that even though the Investment and Inflation are
showing negative effect on the GDP growth but it is over-powered with the
positive effect of the export volume growth. This shows that the export
from SEZ has great impact on the economy of the country.
 Similarly, another regression analysis to study the impact of social factors
on an economy was carried
GDP = 119.67 – 0.93* Women employment – 66.68* Direct
employment + 0.48 * population.
This equation shows that no doubt the employment generated by this SEZ
has a great impact on the welfare of the society and the growth of the
economy, but as compared to the increase in the population of the country
the effect is not felt overall. So necessary steps must be taken to increase
the SEZ zones to create more employment opportunities.
THANK YOU