Evaluate the success of Special Economic Zones (SEZs) in reducing regional imbalances.
Introduction
SEZs are economic enclaves using aids as a foreign territory for the purpose of economic activities. They were instituted under SEZ Act 1005.
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Main Body
[boxed] Evaluating success:
P. Positives:
(i) Large scale land acquisition for implementation of SEZs.
(ii) Increased FDIs & investment in the SEZs, like Upraad GIFT city.
(iii) Enhancement of exports from these SEZs with increased manufacturing capabilities.
(iv) Economic growth & employment to locals, trans (region per capita)
(v) Improved infrastructure, thus enhancing regional connectivity.
[boxed] Limitations:
(i) Regional concentration in the erstwhile industrialised region of west & south India
(Backward effect as implied) [diagram showing SEZ Foodistribution marked in south and west].
(ii) Lopsided development with majority FDIs in western [states]
(iii) Misuse of loopholes with only using these for tax & duty evasion.
(iv) Along the industrialised corridor leading behind the revenue vicky eastern & leg industrialised northern states.
[boxed: Ways to improve]
(i) Policy overhaul to decentralize the development to underdeveloped region.
Thus SEZs can also as centres of growth (Penoux) to mitigate regional imbalances.
Conclusion
Thus SEZs can also act as centres of growth to mitigate regional imbalances
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- Structured approach with positive and negative analysis
Rohin Kumar
Distribution of Key Natural Resources and Industrial Location
Industrial location factors
Special Economic Zones and regional development
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