Indian Real Estate Forum - www.indianrealestateforum.com - View Single Post - SEZs-Fundamentals in confusion

vikram · 01-09-07

Hello members,

We all are coming across the buzz of "Special Economic Zones", SEZs, for the past several years. The term itself projects boost to economies and business environment and the topic is debated as if it is the only critical subject for Indian economy today.

Moreover, India took the concept of SEZ from China, where SEZs play a dominating role in export scenario.

Anyhow we enacted an SEZ Act in 2005 for development of commercial infrastructure and promote exports by providing incentives and priviledges to the corporates operating from these tax-havens.

But it is surprising to find that more than 60% of the SEZ projects in the country are focussed on IT today. To be precise, out of the total of 362 projects, 225 SEZs are IT centric.

History tells that Indian IT industry is already export-oriented and has potential to grow without any such incentives proposed by SEZs. So, there is no need to press on IT in this manner at this moment.

In my personal view, if Indian policy-makers are really interested in promoting exports and enriching country's foreign reserves, then they should pay due attention to other potential sectors like pharmaceuticals, automobiles, textiles and telecom, also.

01-09-07	#1
vikram Member Join Date: Jul 2007 Posts: 50 Thanks: 0 Thanked 0 Times in 0 Posts	SEZs-Fundamentals in confusion Hello members, We all are coming across the buzz of "Special Economic Zones", SEZs, for the past several years. The term itself projects boost to economies and business environment and the topic is debated as if it is the only critical subject for Indian economy today. Moreover, India took the concept of SEZ from China, where SEZs play a dominating role in export scenario. Anyhow we enacted an SEZ Act in 2005 for development of commercial infrastructure and promote exports by providing incentives and priviledges to the corporates operating from these tax-havens. But it is surprising to find that more than 60% of the SEZ projects in the country are focussed on IT today. To be precise, out of the total of 362 projects, 225 SEZs are IT centric. History tells that Indian IT industry is already export-oriented and has potential to grow without any such incentives proposed by SEZs. So, there is no need to press on IT in this manner at this moment. In my personal view, if Indian policy-makers are really interested in promoting exports and enriching country's foreign reserves, then they should pay due attention to other potential sectors like pharmaceuticals, automobiles, textiles and telecom, also. Last edited by vikram; 01-09-07 at 04:57 PM.