Special economic zones: critically study the special Economic Zones (SEZ) in India with emphasis on current issues of SEZ and explore the possibility of Public Private Partnership (PPP) in development of SEZ

Abstract

This report is a critical study of the Special Economic Zones (SEZ) in India with emphasis on current issues of SEZ. The report includes the life cycle of SEZ in India, physical structure and type and major events and enactment of laws since 2005. The study covers the FDI policy for SEZs, export promotion schemes, tax related issues and various controversial issues surrounding the SEZ story in India. The report also gives a perspective of SEZ in other countries, especially China. The report also covers what are the major drivers for the firms to set up (or move to) a SEZ, the benefits to overall economic development etc. The study also explores the possibility of Public Private Partnership in the development of SEZ and how this mode can relieve some of the issues being faced by SEZs. It also discusses as to how Governments partnering with the private sector can add more value and bring in more synergy in case of future SEZs. Finally, we have given our recommendations on how SEZs can be converted as growth engines of economy in India. We have concluded by doing retrospection of SEZ saga so far and how the future will unfold for SEZs.