Performance Evaluation of Indian Export-Processing Zones since Economic Liberalisation

Ashok K. Kundra () and Vyuptakesh Sharan
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Ashok K. Kundra: Special Secretary to the Government of India, Ministry of Environment and Forest, Postal: Paryavaran Bhavan, , CGO Complex, Lodhi Road, , New Delhi - 110 003, , India, http://moef.nic.in/index.php
Vyuptakesh Sharan: Fawaharlal Nehru University, School of International Studies, centre for South Asian Studies, Postal: New Mehrauli Road, New Delhi 110067, India, http://www.jnu.ac.in/index.asp

Economia Internazionale / International Economics, 2000, vol. 53, issue 3, 339-357

Abstract: The paper examines whether the Indian export-processing zones (EPZ5) have been able to fulfil the objectives that are expected of them in view of a host of incentives provided to them during the liberal economic policy regime. It reveals xhat the EPZ export has no doubt picked up but stilI it accounts for only a negligible percentage of the country’s export. Moreover, owing to high import intensity, the net earnings of foreign exchange are far lower. Similarly, EPZs’ contribution to augmenting FDI inflow is utterly poor. As a result, their impact on the improvement of the country’s balance of payments has been meagre. Nevertheless, they bave been able to generate employment and their growing emphasis on local procurement, if not their DTA sales, has strengthened linkages with the peripheral economy. In all, the picture is diverse in different spheres and among different EPZs. A few are dose to the mark, while the others are lagging behind.

JEL-codes: F30 I30 (search for similar items in EconPapers)
Date: 2000
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