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Special Economic Zones (SEZ) and Their Role and Impact On Indian Economy
Special Economic Zones (SEZ) and Their Role and Impact On Indian Economy
EPGD-IB (2018-20)
CONTENTS
1. Introduction
2. Objectives of Research
3. Scope of Study
4. Limitation of Study
5. Literature Review
6. Methodology adopted
7. Conclusion
8. Reference / Bibliography
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Introduction
A special economic zone (SEZ) is an area in which the business and trade laws are different
from the rest of the country. SEZs are located within a country's national borders
The benefit expected from the company in a special economic zones that it can produce the
goods at a lower price and trade it in a competitive international market, thus generating
the revenue for the country.
Hence to encourage for setting up businesses in a zone and overcome the shortcomings on
controls and clearances, SEZ policies are introduced under SEZ Act 2005. These policies
encompass typically investment, taxation, trading, Quota, customs and labour regulations
including the tax holidays. This policy intended to make SEZs an engine for economic growth
supported by quality infrastructure complemented by an attractive fiscal package, both at
the Centre and the State level, with the minimum possible regulations.
It is equally debatable for issuing of new SEZ or rejuvenate the old SEZ with new targets. It is
equally true to consider bringing replacement, modernization, technological up gradation or
expansion and hence compare what has been done and what is expected for the improved
performance.
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Objectives of Research
The objective of this research is to analyze the impact of Special Economic Zones
Policy on:
Export trend through SEZ
Employment boost up and job creation
Contribution of the Revenue generated by SEZ sector.
Overall impact of SEZ on the GDP and country growth rate.
The focus of research is to analyze the impact of the following factors on SEZ
performance :
Administrative issues / procedures for approvals
Land Acquisions for SEZ
Lack of infrastructural facility
End of tax holiday
Restrictions and changes in policy
External factors
Scope of Study:
The study primarily focuses on how the SEZ in India has evolved over the years in the pre
liberalisation and post liberalisation period. It also covers the learning’s from studies of
various other country SEZ and difference in its implementation in India. Adoption of policies
by State and Central Govt and assessment of its impact as needed time to time with
corrective measures.
Recommendations plan shall be established based on the study of positive factors as well as
negative factors affecting performance of SEZ.
Limitation of Study:
This research is limited to the above mentioned factors which are mainly affecting
performance of SEZ. This scope of study does not goes into the thorough analysis of SEZ
worldwide. However, SEZ were discussed for comparison to bring the parity which are
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successful worldwide. This study is for the recommendation on the factors which are shall
further enhance the above mentioned key performance indicators.
Literature Review
In India, the SEZ Act was implemented in 2005 to attracts the investors to invest in SEZ to
get benefits of globalization. At that time the concept is criticized by so many people but it
has implemented and benefited to all.
Preliminary literature review revealed that a fair amount of research has gone into analyzing
success and failure of SEZ during post liberalization era.
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Methodology Adopted:
For the purpose of analyzing the impact of the above-mentioned factors on the
performance of SEZ , data will be collected through the following sources:
Conclusions
The research papers aims to analyse and study all aspects of SEZ Performance with
reference to multiple industries & multiple sectors with help of past and current context of
economy cases covering both successes and failure perception of SEZ Scheme and how it
can help policy makers chalk out administrative strategies in future in order to enhance and
growth rate of SEZ across country .
References / Bibliography:
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