Monday 10 November 2014

Is India's SEZ 'Miracle' losing sheen????



     The Special Economic Zones Act which was passed by the Government of India in May 2005 enabled India's exports to reach new heights as a result of which India is now enjoying increased share in International trade (accounting for about 2.4% of global trade). The 192 operational SEZs have cumulatively exported goods & services worth INR 4.94 trillion in the 2013-14 fiscal. It is to be noted that the Indian government has approved as many as 564 new SEZs of which 388 have been officially notified. Cumulative investments in these zones stands at a hefty INR 3,01,655 crores employing around 12.77 lakh persons. What is worrying is the dwindling rate of growth of exports from these zones. This growth rate has declined sharply to a meager 3.8% in 2013-14 fiscal. Compare this with the   previous year figure of 31%. SEZs account for more than one-fourth of India's overall merchandise exports. This means that there is a urgent need for the Modi government to take corrective measures to arrest this decline.





Year-wise performance of Indian SEZs

Years
Exports
Growth over previous year
Value in Rs. Crores
Billion USD
2005-2006
22,840
5.08
-
2006-2007
34,615
7.69
52%
2007-2008
66,638
14.81
93%
2008-2009
99,689
22.15
50%
2009-2010
2,20,711
49.05
121%
2010-2011
3,15,868
70.19
43.11%
2011-2012
3,64,478
81.00
15.39%
2012-2013
4,76,159
88.18
31%
2013-2014
4,94,077
82.35
4%

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