Not the Last Word

Abstract

In a few years from now, India is likely to have one of the largest numbers of zones in the world. With more than 500 SEZs in various stages of growth and maturity – that is functional, notified, formally approved and cleared in-principle – not many countries in the world will come close to India as a ‘land of zones’. At the last count, Asia has 900 plus zones with the US following with 713. But these estimates by the ILO (Boyenge, 2007) will change dramatically once the new Indian SEZs get going. These shall not transform the ‘zone’ landscape only in Asia, but in the entire world. The change will not be restricted to numbers alone. The economic literature on zones, particularly their impacts, will also enlarge after adding new chapters on the Indian experience. At present, the debate on zones tends to draw most of its inspiration from the Chinese story. Very soon, the Chinese experiences will be compared and contrasted with those from India. This will undoubtedly add more spice to one of the most discussed themes of modern times: the race between the Chinese dragon and the Indian elephant. The Chinese experience provides an appropriate platform for reflecting on the Indian story. India's SEZ policy was heavily inspired by China. Speaking at a convention organized by the Federation of Indian Chamber of Commerce and Industry (FICCI) at Delhi on 21 March 2002, the late Mr Murasoli Maran, India's former Commerce Minister and the creator of its SEZs, commented: ‘I had been to Peoples’ Republic of China to observe the success story of SEZ.