SEZ (SPECIAL ECONOMIC ZONE)

THE DISMAL PERFORMANCE OF OUR ECONOMY BETWEEN 1985 AND 1991 HAS BEEN ASCRIBED BY MANY SCHOLARS FOR REASONS SUCH AS NON-PERFORMANCE OF THE PUBLIC SECTOR, INCREASING DEBT BURDEN ON THE GOVERNMENT AND THE DECLINING FOREIGN EXCHANGE RESERVES. THIS PERSUADED THE THEN FINANCE MINISTER OF OUR NATION Dr. MANMOHAN SINGH TO COME UP WITH HIS LPG MANTRA OF ECONOMIC REFORMS i.e, LIBERALIZATION , PRIVATIZATION AND GLOBALISATION . THIS STEP PAVED THE PATH FOR MANY MNC'S . THUS IN ORDER TO PROVIDE AN INTERNATIONALLY COMPETITIVE MARKET AND HASSLE FREE ENVIRONMENT FOR EXPORTS A POLICY WAS INTRODUCED ON 4TH OF APRIL FOR SETTING UP SPECIAL ECONOMIC ZONES(SEZ'S) IN THE COUNTRY.SIMPLY SPEAKING SEZ'S REFER TO THOSE CENTRES OF FOREIGN TRADE OPERATIONS WHICH ARE SPECIFICALLY DUTY FREE AND CAN BOOST MANUFACTURING PROCESS , AUGMENT EXPORTS AND GENERATE EMPLOYMENT.HISTORY OF SEZ:-THE HISTORY OF SEZ CAN BE TRACE DBACK TO 1980'S WHEN COMMUNIST CHINA ADOPTED THE STRATEGY OF MARKETING ECONOMICS . DURING THIS PERIOD , THE CHINESE GOVERNMENT DECIDED TO ESTABLISH SEZ'S AND ACCEPTED IT AS AN ECONOMIC POLICY . THE IDEA BEHIND THE SEZ'S WAS TO EXPERIMENT WITH LIBERAL POLICIES IN CERTAIN EAR MARKED REGIONS WHILE INSULATING THE REST OF THE ECONOMIES FROM THEIR INFLUENCE. THE CONSEQUENCE WAS TERRIFIC AND CHINA WAS ABLE TO AVHIEVE VERY HIGH GROWTH RATE . THIS EXPERIMENTAL PERFORMANCE OF CHINA WAS ABLE TO ASTONISH OTHER COUNTRIES . OUR COUNTRY INDIA WAS NO EXCEPTION AND WAS AMAZED BY THE OVERWHELMING GROWTH RATE OF CHINA . FINALLY IT WAS IN THE YEAR 2000 THAT THE THEN MINISTER OF COMMERCE Mr. MURASOLI MARAN DECIDED THAT INDIA SHOULD TRY TO REPLICATE THE CHINEESE SUCCESS STORY NAD ANNOUNCED A SEZ POLICY , HOWEVER 5 YEARS LATER IN 2005 THE SEZ ACT WAS PASSED BY THE PARLIAMENT AND WAS ENFORCED IN FEBRUARY 2006. HOWEVER, THE INDIAN SEZ POLICY WAS VERY DIFFERENT FROM THAT OF THE CHINESE POLICY.PURPOSE OF SEZ:-1) STRENGTHENING THE HOLD OF OUR NATION IN THE INTERNATIONAL EXPORT MARKET.2)PROMOTION OF EXPORTS3)ENHANCING EMPLOYMENT GENERATION .4)OVERALL ECONOMIC GROWTH AND DEVELOPMENT OF OUR NATION.------------------------------TO B CONTINUED.