Question Q.12GS3GS3

Enumerate the limitations associated with the operation of Special Economic Zones (SEZs). Assess the potential of the Domestic Enterprise and Services Hub (DESH) bill, 2022 in enhancing the effectiveness of the SEZs.

Introduction

Special economic zones SEZ are specially demarcated economic area in the country within is treated as a foreign land to diversify manufacturing and export from that area.

27 words

Main Body

Special economic zones SEZ are specially demarcated economic area in the country within is treated as a foreign land to diversify manufacturing and export from that area. Facilities like infrastructure, electricity are provided by government. Limitations with SEZ: (1) Increase in compliance with various rules and regulations. (2) Bureaucratic and administrative hindrances. (3) Lack of required infrastructure in the area. (4) Regional disparity mostly concentrated in five states are as maharastra, Gujarat, Karnataka.

5Lack of markets for products (domestic as well as international). (6) Increase logistics cost which results reduced of product with external market (logistics cost of India ~16 % GDP; logistics cost of world ~2-4 % GDP). (7) Take importion in domestic tariff area within results confusion. (8) According to carry report out of ~ 300 sanctioned SEZ only 94 are operational. Recently parliament promised a DESH bill for enhancing SEZs capacity.

1Integrated approach to increase efficiency (eg both manufacturing and services envisioned) (2) Boot to domestic demand and market as well charge against external stock of world. (3) Local sourcing of product (4) Employment to domestic people (5) will embrace the free investments SEZs are the progressive step to increase economic growth and accelerating export led growth. Steps like fiscal policy, input policy, infrastructure capacity, IED needs to be done.

215 words1 paragraphs

Conclusion

SEZs are the progressive step to increase economic growth and accelerating export led growth. Steps like fiscal policy, input policy, infrastructure capacity, IED needs to be done.

27 words

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Page 26

Topper

ADITI ARORA

AIR 3512025

Subject & Paper

GS3GS3

Topic

Land Reforms, Liberalization, Infrastructure & Investment

SEZs and Investment Models

Special Economic Zones and DESH Bill

Writing Stats

269

Total words

Paragraphs

analytical evaluative

Tone