SEZs and Other Industrial Clusters: Why Incentives Have Not Been Successful in Developing Manufacturing in India?

Arpita Mukherjee (), Parthapratim Pal, Saubhik Deb, Subhobrota Ray and Tanu M. Goyal
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Arpita Mukherjee: Indian Council for Research on International Economic Relations
Parthapratim Pal: Indian Institute of Management
Subhobrota Ray: Economist and Independent Consultant
Tanu M. Goyal: Indian Council for Research on International Economic Relations

Chapter Chapter 7 in Special Economic Zones in India, 2016, pp 153-170 from Springer

Abstract: Abstract The central and the state governments in India have enacted over 300 policies and schemes, most of them for promoting the growth of the manufacturing sector. The majority of the cluster-based schemes can be dovetailed with incentives under the SEZ policy, implying that an investor can avail of the benefits under more than one scheme and/or policy. However, despite subsidies, grants and other incentives, manufacturing has not grown as expected. This chapter examines some of the cluster-based schemes and how these can be dovetailed with the SEZ policy. It also makes policy recommendations on how to support the growth of the manufacturing sector in India.

Keywords: Central Government; State Government; Industrial Policy; Industrial Cluster; Food Processing Industry (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/978-81-322-2806-6_7

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