Special Economic Zones in India: Establishment, Challenges, and Possibilities

Abstract

This review provide brief overview of special economic zones (SEZs) in India, highlighting the objectives, establishment process through SEZ Act 2005, problems faced in SEZ and their possible solutions. The major objective is promoting exports in a hassle-free environment, creating job opportunities and pushing economic growth of region and country. SEZ was initiated as export processing zone (EPZ) in 1969 which were converted to SEZ under Export-Import (EXIM) policy in 2000. The most revolutionising change was single window clearance protocol under the SEZ Act 2005. Despite streamlined protocol, various socio-economic challenges emerged in SEZ including real-estate exploitation, agricultural land-loss and inadequate compensation, revenue losses, perturbation in regional balances and administrative weakness. This review discussed the possible solutions through new policies and amendments in existing policies thus provide intelligible SEZ concept and encourage entrepreneurs to expand their business through SEZ near small towns leading to overall growth of region and nation.