PaRCha - JNU - AISA material - 2006 ID-17339
.
greenfield SEZs, but also the erstwhile export processing zones (EPZs) converted into SEZs. .
The policy of the Central Government was to encourage and enable the establishment of SEZs in the private or joint sector in association with the States or by their governments themselves. .
Meanwhile, a lot of time was spent in evolving an all-encompassing legislation called the Special Economic Zones Bill, which was introduced in Parliament earlier this year and passed subsequently. The Special Economic Zones Act, 2005, got the Presidential imprimatur in June. The Act, however, is yet to be notified, even though there has been a tremendous surge in interest for the launch of SEZs, as is evident from the growing number of big industrial houses applying to the Board of Approval for putting up SEZs in many areas. .
Indias SEZs are no patch on their massive Chinese counterparts for a host of reasons. Partly, it is because China divided each region into an SEZ and granted preferential treatment to foreign ventures that enabled high-cost industrialised countries to use it as an attractive outsourcing platform for manufacturing activities. Though India has, of late, emerged as the preferred destination for back-office business process outsourcing in IT and software industry, it is way behind China as an emerging outsourcing platform for manufacturing activities. .
It is against this harsh reality that the new-fangled idea of SEZs could make a modest start in showcasing India's manufacturing prowess, attract foreign direct investment (FDI) and facilitate domestic manufacturers to make a foray into SEZs. .
To clarify issues on the SEZs, Business Line spoke to Mr Lalit B. Singhal, Director-General of the Export Promotion Council for EoUs (export-oriented units) and SEZ units (EPCES). Mr Singhal was earlier Joint Director-General of Foreign Trade (DGFT). He was conversant with trade policy making for a number of years before joining the newly created EPCES. .
Excerpts from the interview: .
The original SEZ concept was floated in the 2000 Exim Policy, and the SEZ Bill was introduced and passed in Parliament only in mid-2005. In the intervening period, so many changes impacting India's foreign trade have happened. What is the rationale for the SEZs, what are their objectives and how far will the proposed Act boost exports? .
The concept of export processing zones was introduced in 1965, much before the advent of the SEZ Act, in 2005. Major objectives of the SEZ Act include generation of additional economic activity, promotion of export of goods and services, as also investment from domestic and foreign sources and creation of employment opportunities. .
.
PaRCha - JNU - AISA material - 2006 ID-17339
.
greenfield SEZs, but also the erstwhile export processing zones (EPZs) converted into SEZs. .
The policy of the Central Government was to encourage and enable the establishment of SEZs in the private or joint sector in association with the States or by their governments themselves. .
Meanwhile, a lot of time was spent in evolving an all-encompassing legislation called the Special Economic Zones Bill, which was introduced in Parliament earlier this year and passed subsequently. The Special Economic Zones Act, 2005, got the Presidential imprimatur in June. The Act, however, is yet to be notified, even though there has been a tremendous surge in interest for the launch of SEZs, as is evident from the growing number of big industrial houses applying to the Board of Approval for putting up SEZs in many areas. .
Indias SEZs are no patch on their massive Chinese counterparts for a host of reasons. Partly, it is because China divided each region into an SEZ and granted preferential treatment to foreign ventures that enabled high-cost industrialised countries to use it as an attractive outsourcing platform for manufacturing activities. Though India has, of late, emerged as the preferred destination for back-office business process outsourcing in IT and software industry, it is way behind China as an emerging outsourcing platform for manufacturing activities. .
It is against this harsh reality that the new-fangled idea of SEZs could make a modest start in showcasing India's manufacturing prowess, attract foreign direct investment (FDI) and facilitate domestic manufacturers to make a foray into SEZs. .
To clarify issues on the SEZs, Business Line spoke to Mr Lalit B. Singhal, Director-General of the Export Promotion Council for EoUs (export-oriented units) and SEZ units (EPCES). Mr Singhal was earlier Joint Director-General of Foreign Trade (DGFT). He was conversant with trade policy making for a number of years before joining the newly created EPCES. .
Excerpts from the interview: .
The original SEZ concept was floated in the 2000 Exim Policy, and the SEZ Bill was introduced and passed in Parliament only in mid-2005. In the intervening period, so many changes impacting India's foreign trade have happened. What is the rationale for the SEZs, what are their objectives and how far will the proposed Act boost exports? .
The concept of export processing zones was introduced in 1965, much before the advent of the SEZ Act, in 2005. Major objectives of the SEZ Act include generation of additional economic activity, promotion of export of goods and services, as also investment from domestic and foreign sources and creation of employment opportunities. .
.