Economic Zones In India Research Articles

Place-based policies and firm performance: Evidence from Special Economic Zones in India

This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct effects of the program on firm performance. We combine geocoded firm-level data and geocoded SEZs. Our analysis yields that conditional on controlling for initial selection based on observables, the establishment of new SEZs did not induce any discernible positive effect on the productivity growth of firms in the SEZs. To explain this, we focus on the possibility of distortions through non-profitable activities on the part of managers. We find that firms especially in publicly-owned SEZs decreased their productivity growth, while firms located in privately-owned SEZs experience productivity increases. We also show that directors of firms located inside the publicly-owned zones experienced a significant increase in their salary growth, which is not the case in privately-owned SEZs. Our findings are in line with the idea that the possibility of rent-seeking by managers leads to distortions in program implementation.

Locational Strategy of Special Economic Zones in India

The establishment of special economic zones (SEZs) in Indian districts is intended to bring rapid economic growth to India. However, the data on SEZs show that SEZs are concentrated in only a few Indian districts and thus aggravate the problem of regional inequality. In this paper, the strategy of concentration of SEZs is analysed with a backdrop of the new economic geography theory. The data of the variables are extracted from Census 2011 and other sources for all 640 districts. The Tobit model is used to determine the locational factors behind the establishment of the SEZs in a district of India. The results show that the variables such as urbanization, distance from megacity, districts with a seaport and districts with airports have a significant impact on the number of SEZ approvals as well as SEZ notifications. The concentration of SEZs is mainly due to favourable market and infrastructural conditions. JEL codes: O10, C24, D63

Political Domination and Economic Dispossession of Farmers: The Case of Land Acquisition for Special Economic Zones in India

Abstract Involuntary acquisition of agricultural land for setting up of Special Economic Zones (SEZ) in India benefited the elite at the expense of small farmers who were and are the dominant voting group. Consequently, such policies were met with fierce political resistance by farmer organizations across the country. However, these movements have a mixed record against land acquisition attempts by the state and large corporations. This paper presents a simple model of the political conflict between the elite and small farmers over land acquisition to show how the elite may mobilize resources to ensure that their economic interests are protected even in democracies where they are in electoral minorities. We test the predictions of our model using a new data set compiled on SEZ projects that failed to acquire land because of farmer agitations. We show that factors like inequality in land ownership (class) and hierarchies of caste hinder the ability of small and marginal farmers to successfully organize collective action against land acquisition. Further, the division of votes along caste and ethnic lines also dilutes the potential for successful farmer agitations against land acquisition. Finally, we find that historically marginalized communities also resist land acquisition even when they face greater caste-based discrimination in the traditional village economy.

Fiscal implications of special economic zones in India: a study of Noida SEZ

Fiscal implications of special economic zones in India: a study of Noida SEZ

Fiscal implications of special economic zones in India: a study of Noida SEZ

Fiscal implications of special economic zones in India: a study of Noida SEZ

Special economic zones in India: establishment, challenges, and possibilities

Special economic zones in India: establishment, challenges, and possibilities

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

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.

The Politics of Industrial Displacement: Evidence from Special Economic Zones

How do politicians locate industrial projects, such as special economic zones and industrial townships, that have highly localized costs (population displacement) and benefits (jobs and infrastructure)? I argue that risk-averse politicians minimize the costs of displacement for industrial projects by locating the projects in areas where they have little existing support. In order to maximize the benefits of the projects, politicians also locate the projects far from state or national borders to ensure that the future benefits of the projects accrue only to potential voters. To test this argument, I geocode the locations of public and private special economic zones in India and use private zones as a control group for public zones. The analysis finds support for the argument in that public zones are significantly more likely to be located in constituencies where the government performed badly in prior elections and far from state and national borders.

Special Economic Zones: Operational Adjustment of Labour Law

Labour law regimes worldwide have undergone a metamorphosis on account of their inextricable relation with the labour market which in turn is influenced by the prevailing economic thought. The mid-eighties witnessed a marked shift in the dominant economic thought from demand side to supply side economic theory. Export processing zones or special economic zones established with a view to promote export oriented economic growth constitute an overzealous expression of this shift. In tune with this trend, labour law, as operationalised in special economic zones in India manifests adjustment of workers’ rights to the need of economic growth euphemistically called ‘development’. The intention to exclude application of labour law in these zones reflected in the Bill introduced by the then minister of Commerce and Industry is being realised despite the outright rejection of such exclusion by the legislature and its substitution by a norm upholding the applicability. The following piece presents the saga of normative ways and mechanisms adopted for such a structural adjustment of labour law within special economic zones.

A Social Benefit Cost Analysis of Special Economic Zones in India: A Study of Noida SEZ

Special economic zones (SEZs) in India have been in news due to their usefulness vis-à-vis adverse effects on economy. A good number of opponents opine that costs incurred by SEZs outweigh the benefits. However, it cannot be denied that SEZs have played a positive role in the welfare of the economy. Thus, to examine this issue, we carried out a social benefit–cost analysis (SBCA) on Noida Special Economic Zone (NSEZ) within the context of enclave model for the period of 2009–2016. The result shows the positive net present value and benefit–cost ratio greater than one under methodological assumptions. This infers that NSEZ is contributing towards the welfare of Indian economy. One interesting findings of the study is that NSEZ is generating positive gains to economy with the absence of various market distortions which could otherwise reduce the realised benefits. Hence, need arises to eliminate such distortions from outside area of economy also to make it competitive at global level. Therefore, it can be concluded that competitiveness of the Indian economy can be enhanced with the removal of market distortions and liberalisation of rules, regulation and policies for economic development activities. Hence, the Government of India should emphasise and make regulations and policies that encourage competitiveness of the industries. JEL Classification: D04, D61, F13, H2, J01

Gender and land dispossession: a comparative analysis

This paper seeks to advance our understanding of the gendered implications of land dispossession. It does so through a comparative analysis of five cases of rural land dispossession driven by different economic purposes in diverse agrarian contexts: the English enclosures; colonial and post-colonial rice irrigation projects in The Gambia; large dams in India; oil palm cultivation in Indonesia; and special economic zones in India. The paper first identifies some of the very common gendered effects of dispossession. In each case, it shows that land dispossession reproduced women’s lack of independent land rights or reversed them where they existed, intensified household reproductive work and occurred without meaningful consultation with – much less decision-making by – rural women. The paper secondly demonstrates ways in which the gendered consequences of land dispossession vary across forms of dispossession and agrarian milieux. The most important dimension of this variation is the effect of land loss on the gender division of labour, which is often deleterious but varies qualitatively across the cases examined. The paper also illustrates important variation within dispossessed populations as gender intersects with class, caste and other inequalities. The paper concludes that land dispossession consistently contributes to gender inequality, albeit in socially and historically specific ways. So while defensive struggles against land dispossession will not in themselves transform patriarchal social relations, they may be a pre-condition for more offensive struggles for gender equality.

Labour and Labour Welfare in Special Economic Zones in India with Special Reference to Gujarat

This article discusses welfare measures in the formal sector being constrained by labour legislation which is, at best, empirically fragile. This very fragility requires us to view labour laws and possible reforms using conceptual frames that are not preoccupied with de jure legislation but rather focus on the actual implementation of the law considering judicial and executive practice. Various factors taken together complemented by empirical work in Gujarat reflect that while labour laws are supposed to be operational in a special economic zones (SEZ), they are almost absent in practice. This study is based on both theoretical and empirical methods. This study suggests systematic non-implementation of labour welfare measures that have a negative implication on workers in each and every way possible. This has led the workers in SEZs to earn their living in an atmosphere of threat, fear and uncertainty.

Special Economic Zones in India Boon or Bane?

This article is aimed at highlighting the success or otherwise of Special Economic Zones (SEZs) in India. India mooted the concept of Special Economic Zones in 1965 much before its neighboring country China adopted the same model. A Special Economic Zone is a geographical region that has economic laws that are more liberal than a country’s typical economic laws. To boost the confidence of the investors Government has enacted Special Economic Zones Act, 2005. Since then, the growth rate of SEZ is enormous with almost 568 SEZs were given formal approval.An assessment is made keeping in view of the achievement of the declared objectives of SEZs since its inception. A comparison is made between India’s SEZ model and China’s SEZ model to understand the basic differences in both the models. Further, Strengths and Weaknesses are analyzed while identifying Opportunities and Threats in Indian scenario. The impact of recent global recession on functioning and growth of SEZs are also considered while assessing the success or otherwise of Special Economic Zones in India.

Economic Security Outlook for India in a World of Growing Political Uncertainty

The research paper provided an analysis of India's economy, its domestic issues, and more importantly, its integration with the world economy. The paper described key factors in the nature of Indian participation in international division of labor, discussing both strengths and weaknesses that provide opportunities or dictate India's needs. The analysis of foreign direct investment inflows and outflows is provided, as well as India's trade partnerships: key sectors and key partners. The paper also discussed about the special economic zones in India. India's energy crisis is discussed, and countries that currently play a major role in mitigating that crisis are also presented. The article also pointed out general economic and social situations: as the service sector plays an extremely important role in the Indian economy, the quality and quantity of its labor force were also discussed, and so was the general business environment for domestic and foreign investors. The key points for India's economic security in the nearest future are suggested, and brief geopolitical factors that will shape the strategic choices of India are also presented. In conclusion, the paper presented an outlook on the current situations in India, key economic security priorities, India's international economic partnerships, and vision on strategic partnerships that will mitigate existing risks and promote healthy economic growth.

New modes of industrial manufacturing: India’s experience with special economic zones

Abstract Special economic zones in India have gained prominence among the policy making circles in recent years. The argument by the policy makers was that these zones will allow industrialisation in India. This article reviews the emerging geography of SEZs (special economic zones) in India and the Indian government recent experiment with the SEZs as models of economic development. The article argues that current SEZ policy in India is designed along the lines of mainstream economic strategy for industrialisation of Washington Consensus, i.e. open economy with greater market freedom coupled with minimal government intervention leads to rapid economic growth and rising incomes. The evidence suggests that these zones are giving rise to uneven geographical development in India with certain regions, sectors and classes are deriving the benefits from this policy.

Special Economic Zones in India: Recent Developments and Future New Challenges

Special Economic Zones in India: Recent Developments and Future New Challenges

Did the metamorphosis from Export Processing Zones to Special Economic Zones improve the efficiency of trade enclaves in India?

In this paper, the efficiency of seven conventional Special Economic Zones in India is analyzed, by adopting a stochastic production frontier technique, for the period between 1986–1987 and 2007–2008.Results indicate that although the efficiency scores of these enclaves have improved over the years, specifically with the introduction of the SEZ policy (2000–2001), it is far below the threshold level as identified in the literature. Besides, one can also observe a discrepancy emerging between better export earning zones and efficient zones. On the determinants side, policy intervention and large geographical area, accompanied by clustering of units, are found to have impacted the efficiency scores of these enclaves positively.

An Analysis of the Feasibility of Private Land Assembly for Special Economic Zones in India

India has used export processing zones as a development strategy since the mid 1960s. The performance of these zones did not meet expectations and, in 2001, the government changed the rules and the name, and recast them as special economic zones. Indian special economic zone policy was formulated to facilitate the private development of big industrial townships. This is a significant departure from the typical export zone model, where governments usually develop the zone and invite entrepreneurs to start firms within it. However, the zone policy is unlikely to achieve its objective because of land acquisition problems. This paper analyses the effect of land laws such as land ceiling and land use clauses, and the political nature of land dealings in the context of special economic zone development in India, and concludes that private land acquisition is not possible with the current structure of land laws in India, and that this is a primary problem for the private development in special economic zones in India.

The "Political Territoriality" of Special Economic Zones in India

The "Political Territoriality" of Special Economic Zones in India

Special Economic Zones as New Forms of Corporate Land Grab: Experiences from India

Chigurupati Ramachandraiah and Ramasamy Srinivasan argue that special economic zones in India are not pro-poor people centred development but rather are a form of land grab that dispossess rural peasants to the benefit of big capital and the elite. After 60 years of independence, India is experiencing ‘social justice in reverse gear’ with a failure to uphold the land rights to the poor.