Trade Performance of SEZ in Southern India – A Comparative Study of Karnataka and Kerala Special Economic Zones

Abstract

Since the SEZ policy was announced in 2000, there has been a continuous effort made for the improvement in the export performance. The Special Economic Zone scheme was also upgraded through a revision in the Export-Import Policy of 1997–2002 and the Special Economic Zones Act was passed in 2005. However, it was the enactment of the SEZ Act that provided a major push to the SEZs’ export performance and the SEZ policy for the increased exports. Export growth is necessary to offset the deterioration in the balance of payments. Through the establishment of Special Economic Zones export is increasing considerably. Therefore, there is a need to understand the contribution of Southern SEZs towards India's Trade. In this background, the present paper analyses the Trade performance of Special Economic Zones of Southern India, focusing on Karnataka and Kerala SEZs. With the help of the collected sources of data it examines the export – import trade of Karnataka and Kerala SEZs and their contribution to Indian exports.