Economic Impact of SEZs

Aradhna Aggarwal

in Social and Economic Impact of SEZs in India

Published in print February 2012 | ISBN: 9780198077275
Published online September 2012 | e-ISBN: 9780199081035 | DOI:
Economic Impact of SEZs

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This chapter analyses the performance of special economic zones (SEZs) in terms of employment; investment, both foreign direct investment (FDI) and domestic; and exports against the backdrop of the shift in the policy regime in 2005. In doing so, it goes beyond the aggregate data to present a micro picture. It also addresses the following question: would the activity have occurred, holding all else constant, if SEZs were not implemented? The analysis reveals that the SEZ policy has succeeded in giving a major push to direct investment and employment at the aggregate level. There is evidence that they have affected industrial activity outside them also. However, the performance has remained far below the expectation. This chapter analyses the factors affecting the performance of SEZs and observes that it will require concerted efforts by the government to create conditions for exploiting their potential.

Keywords: India; foreign direct investment; employment; investment; exports; foreign exchange; governance; infrastructure

Chapter.  10463 words.  Illustrated.

Subjects: Economic Development and Growth

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