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 SEZs, the new engines for export led economic growth in

India, defined as:


“Specifically delineated duty-free enclave and shall
be deemed to be foreign territory for the purposes
of trade operations and duties and tariffs”
. . . EXIM Policy 2000, Chapter 9 para 30
 Extremely successful Chinese format to promote exports,
attract FDI and foster overall economic growth
 Shenzhen SEZ, started in 1981, has achieved 38% GDP
growth CAGR (highest recorded so far) mainly due to:
 Liberal economic framework
 Integrated infrastructure at very competitive prices.
(a) Generation of additional economic activity

(b) Promotion of exports of goods and services;

(c) Promotion of investment from domestic and

foreign sources;

(d) Creation of employment opportunities;

(e) Development of infrastructure facilities;


 A designated duty free enclave and to be treated as
foreign territory for trade operations and duties and tariffs
 No license required for import
 Manufacturing, trading or service activity allowed
 SEZ unit to be positive net foreign exchange earner within
three years
 Performance of the units to be monitored by a Committee
headed by Development Commissioner and consisting of
Customs
 No fixed wastage norms
 Full freedom for subcontracting including subcontracting
abroad
 Job work on behalf of domestic exporters for direct exports

allowed
 Contract farming allowed agriculture/ horticulture units
 No routine examination by Customs of export & import

cargo
 No separate documentation required for Customs and Exim

Policy
 In house customs Clearance
 Support service like banking, post office, clearing agents
State Govt/pvt. SEZs SEZs notified
established prior
Central Govt SEZs under
to SEZ Act, 2005
SEZ Act,2005
 Number of Formal approvals -- 579
 Number of notified SEZs (as on 8th September, 2009) - 335(out
of 579) + (7 Central Govt. + 12 State/Pvt. SEZs)
 Number of valid In-Principle Approvals -147
 Operational SEZs (As on 30th June, 2009) -98

April-June, 2009
Central Govt SEZs 18068.68
State Govt/pvt. SEZs established 7557.2
priorto SEZ Act, 2005

SEZs notified under SEZ Act,2005 16875.88

Total 42501.76
Before SEZ Act,2005
 Investment:-Rs. 5626.24 crore for
1143 operative units
 Employment:- Over 1.97 lakh
persons

Current Scenario
• Investment:           Rs. 83450crore
• Employment:        1,13,426 persons
 174 approvals are for multi product SEZs
-Textiles & Apparels, Leather Footwear,
Automobile components, Engineering etc

 Employment for large number of unemployed


rural youth
 Employment to 14577 and 1058 persons at
Nokia and Flextronics electronics hardware SEZs
in Sriperumbudur

 Hyderabad Gems SEZ has already employed


2145 persons

 IT/ITES SEZs which as per the NASSCOM


EMPLOYMENT (As on Incremental Total employment
31st March, 2009) employment

SEZs Notified under the 1,34,627persons 1,34,627persons


Act

State/Pvt. SEZs set up 43,422 persons 55,890 persons


before 2006

Government SEZs 74,686 persons 1,96,922 persons

Total 2,52,735 persons 3,87,439 persons


Year Value (Rs. Growth Rate
Crore) (over previous
year )
2003-2004 13,854 39%

2004-2005 18,314 32%

2005-2006 22 840 25%

2006-2007 34,615 52%

2007-2008 66,638 92%


 Exports in 2008-09 Rs.99,689
Crore(Growth of 50% over 2007-08)

 Overall growth of exports of 620% in


five years (2004-2009)

 Exports in 2009-10 (As on 30th June,


2009) Rs. 42,501.76 crore
INVESTMENT (As on Incremental Total Investment
30th June, 2009) investment

SEZs Notified under Rs.1,04,589.3cr Rs.1,04,589.3 cr


the Act

State/Pvt. SEZs set Rs.4,901.27 cr Rs.6,657.58 cr


up before 2006

Government SEZs Rs.1,114.45 cr Rs. 3,393.65 cr

Total Rs.1,10,605.02 cr Rs.1,14,640.53 cr


 Total investment of
Rs.1,14,640.53 cr
 Total Exports of Rs. 42,501.76
crore with 92% growth rate
 3,87,439 persons employed

Doesn’t the figures speak for


itself??

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