SEZs in India: A Perspective View

Special Economic Zones (SEZs) in India, covering their historical trend, current scenario, and recent developments. It highlights the achievements, investments, and employment opportunities generated by SEZs in different sectors. The article also discusses the growth potential and evolving policies of SEZs in India.

• SEZs
• India
• economic development
• investment
• employment
• industrial development
• government policies
• global trade
• infrastructure
• growth potential

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1. SPECIAL ECONOMIC ZONE A PERSPECTIVE VIEW - Office of the Zonal Development Commissioner, FSEZ For SEZs and EOUs in East and North Eastern Region Ministry of Commerce & Industry Government of India

2. The Indian scenario India was one of the first countries in the South Asian region to adopt SEZs, establishing an EPZ in 1965. In the 1990s, in the context of economic liberalization, many of the controls that had stymied SEZ operations in the 70s were removed. A new EXIM policy introduced in 2000 permitted state governments as well as the private sector to establish SEZs. The SEZ Act in 2005 aimed to push private sector investment to support industrial development. The Act converted EPZs to SEZs and clarified the rules for establishing other SEZs, resulting in a proliferation of new zone plans. Today, 267 SEZs are operational, around 65% of which specialize in ICT-related manufacturing and services. Because of the country s economic progress, the present policy has been changed and is continuously evolving in a manner, so as to, give more freedom to both the business fraternity and the SEZ objectives.

3. Historical Trend of SEZs in India Initial Phase (1964-1984) Establishment of Kandla FTZ in 1965 and SEEPZ Mumbai in 1973 Falta EPZ established in 1984 Phase 1 Expansion and Consolidation Phase (1985-1991 & 1991-2000) Noida, Madras, Cochi and Vizag EPZs were established. EOU Scheme introduced. EPZs underwent restructuring, simplification & rationalisation. Phase 2 & 3 Expansionary Growth Phase (Post 2000 to present) New EXIM Policy adopted, leading to conversion of EPZs to SEZs and creation of new SEZs. SEZ Act in 2005 enacted and formulation of SEZ Rules in 2006. Presently, 379 notified SEZs, out of which, 267 are operational SEZs, covering total 47480 hectares of area. Phase 4

4. Jurisdiction of Falta SEZ

5. New SEZs in Last three years 20th August 2019 -Adani Power (Jharkhand) Ltd SEZ : Godda District, Jharkhand 1. Sector Specific Power SEZ 2. Land Area: 222.668 Hectares. 3. Proposed Investment : Rs. 14,817 Crores 4. Direct Employment Proposed: Men-5800,Women-200 5. Project: Ultra Super Critical Thermal Power Project, units of 2 X 800 MW, Complete Power is proposed to be Exported sale to Bangladesh Govt.

6. 16.12.2019 - Agro Based SEZ, Sabroom, Tripura 1. Investment 635 Crores 2. Employment 5000 Approx 3. Land Area 16.35 Hectares. 4. Developer TIDC LTD Tripura. 5. Present Status(as on 08.11.2021) a) construction of Boundary wall with gate completed 95%. b)E-Tender by TIDC floated for selection of Co- Developer c) TIDC has approached to ADB for financial assistance.

7. 8thJune, 2021 - IT/ITES SEZ at Namli, Sikkim Name of the Developer:- Department of Information Technology, Government of Sikkim At Namli, 8thMile, Ranipol, East Sikkim Land Area :- 6.32 Hectares Proposed Investment in Infrastructure by the Developer:- Rs.50 Crore Proposed Exports and Employment from the Zone as submitted by the Developer:- Year1 20 Crores 200 Year2 40 Crores Year3 60 Crores Year4 80 Crores Year5 100 Crores Exports Direct Employment Indirect Employment 400 600 800 1000 800 1200 1800 2600 4000

8. Export from SEZs of Falta Jurisdiction (Rs. in Crores) 60000 48147 47731 50000 40000 31727 31243 29875 30000 27433 27034 22816 22620 21113 20298 18847 18304 20000 17292 13951 14317 12880 12391 11571 10229 8499 10000 0 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 upto 31.07.2023 Merchandise Services Total Exports

9. FALTA SPECIAL ECONOMIC ZONE Sez Wise Merchandise Exports from-April to July ( FY-2023-24 vs FY-2022-23 ) Sez Name FY-2023- 24 FY-2022-23 Change In Inr Inr terms Growth in Inr (+) ve or (-) Ve INR (Rs. In Cr.) INR (Rs. In Cr.) VEDANTA ALUMINIUM LTD. FALTA SPECIAL ECONOMIC ZONE MANIKANCHAN SPECIAL ECONOMIC ZONE 7,410 8,591 - 1,181 -14% -ve 744 610 134 +22% +ve 312 344 - 32 -9% -ve SARAF AGENCIES PVT. LTD. 29 132 - 103 -78% -ve TATA STEEL SPECIAL ECONOMIC ZONE LIMITED 4 0 4 +ve ADANI POWER (JHARKHAND) LIMITED 0 0 0

10. FALTA SPECIAL ECONOMIC ZONE Sez Wise Software and Service Exports from-April to July ( FY-2023-24 vs FY-2022-23 ) Sez Name FY-2023- 24 FY-2022-23 Change In Inr Inr terms Growth in Inr (+) ve or (-) Ve INR (Rs. In Cr.) INR (Rs. In Cr.) TATA CONSULTANCY SERVICES 3,691 3,190 501 +14% +ve Orissa Industrial Infrastructure Development Corporation (IDCO) (IT/ITES SEZ) 672 627 46 +7% +ve Orissa Industrial Infrastructure Development Corporation (IDCO)IT knowledge park DLF Limited (IT/ITES SEZ) Wipro Special Economic Zone Candor Kolkata One Hi- tech Structures Pvt Ltd 6,661 382 6,278 +94% +ve 608 539 69 +11% +ve 324 389 - 65 -20% -ve 2,245 2,038 207 +9% +ve 115 109 6 +5% +ve Kolkata IT Park

11. Cumulative Investment in FSEZ Rs in Crores 30000 27409.6992 27409.699 27385.18 25000 23252 21861.44 20007 20000 15000 Cumulative Investment 10000 5000 0 2017-18 2018-19 2019-20 2020-21 2021-22 22-23 (upto 31.03.2023)

12. Direct Employment in FSEZ (Rs. In Crores) 105000 102832 100000 99161 96245 95000 Direct Employment 90000 88630 88159 87755 85000 80000 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 (upto 31.03.2023)

13. Merchandise Exports for various SEZ 2023-24 (Rs in Cr.) 4, 0% 29, 0% 744, 9% 312, 4% FALTA SPECIAL ECONOMIC ZONE MANIKANCHAN SPECIAL ECONOMIC ZONE SARAF AGENCIES PVT. LTD. VEDANTA ALUMINIUM LTD. 7,410, 87% TATA STEEL SPECIAL ECONOMIC ZONE LIMITED

14. Service Exports for Various SEZ 2023-24 (Rs. In Cr.) Candor Kolkata One Hi-tech Structures Pvt Ltd 608, 4% 2,245, 16% DLF Limited (IT/ITES SEZ) 324, 2% 115, 1% 672, 5% Kolkata IT Park 3,691, 26% Orissa Industrial Infrastructure Development Corporation (IDCO) (IT/ITES SEZ) Orissa Industrial Infrastructure Development Corporation (IDCO)IT knowledge park TATA CONSULTANCY SERVICES 6,661, 46% Wipro Special Economic Zone

15. Sector Wise Export Metal 0 0 Gems And Jewellery Energy including Captive, Solar Textiles & Garments Trading And Services 21,113 24,013 Engineering, Electonics and Hardware Food and Agro industry Plastic and Rubber Chemicals Leather, footwear and sports goods 7 9 1,254 IT/ITES 45 169 627 Packaging 224 344 Handicraft 337

16. 224 169 Export Other than Metal and Mineral 0 0 1,254 627 337 344 45 9 7 21,113 Gems And Jewellery Energy including Captive, Solar Textiles & Garments Trading And Services Engineering, Electonics and Hardware Food and Agro industry Plastic and Rubber Chemicals Leather, footwear and sports goods IT/ITES Packaging Handicraft

17. EOU Performance (Rs. In crore) Year wise export figure for the last five years 2015- 16 2016- 17 2017- 18 2018- 19 2019- 20 2020- 21 2021- 22 (up to Mar Prov.) 2022-23 (up to March 2023 Prov.) 2023-24 (up to July 2023- 24) 1974. 63 1915. 23 2019. 99 2146. 68 1804.1 7 2024. 50 2035.0 2 2008.99 494.17

18. Challenges faced Shallow Port Facility at Kolkata Port and Haldia Port. Out of 55km distance from Kolkata Airport to the Falta Zone , approx 40kms is NH, which requires widening at some overcrowded yet crucial locations. Scarcity of containers operational hurdles at Kolkata Port. Resulting in more freight charges and increased turnaround time.

19. Way Forward Upgrade to Next Level 1. Innovation-driven SEZs 2. R&D based SEZs (Biotech, Nanotech, Robotics) 3. Cross-border SEZs 4. Tourism-based SEZs 5. Health-Tourism SEZs 6. Special region-specific benefits may be considered to be extended on differential basis to counter regional imbalance of financial growth.

20. Present Level to Next Level High Tech: 1. Meeting the need of the world & Indian consumption for import substitution. - Mobile manufacturing - Computer hardware manufacturing - Solar Cell manufacturing - Aeronautics & Space Technology 2. IOT, Big Data, 3D Printing, Advance Robotics, Drones & Artificial Intelligence. 2. Microbiology, Bio-technology, Nano-technology

21. Sustainable Development Goal of UN 1. Kyoto & Paris agreement Sustainable development is the key. 2. Green & Clean SEZs. 3. Utilization of newer energy sources/Green energy, Plantation, Ground Water Recharge, Solid Waste management, Effluent Treatment Plant, Zero discharge to water bodies. 4. Value addition to agriculture to have inclusive growth benefit to the farmer. 5. Skill Development. 6. Social Impact Labour law, Social Security, Industrial Safety, Capacity building

22. Thank You