SEZ proliferation in India: are the objectives being realized?

Antra Bhatt, Manas Puri and Andrea Appolloni ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes if the industrial policy framework of the Indian Government with regard to the proliferation of SEZs has satisfied its aims and objectives. The analysis however, shows otherwise. The empirical results show that the policy of the Indian Government has been lopsided, wherein the concentration of SEZs has increased in States which face lower levels of unemployment and a comparably high level of FDI inflow. Further, the concentration of the SEZs has been restricted majorly to the IT industry resulting in rigidity in the export mix. Policy implications hint towards a diversification of the SEZ industry portfolio and in increasing the size and therefore, the economic impact of these zones.

Keywords: Indian Industrial Policy; FDI; Unemployment; Export; Economic Development (search for similar items in EconPapers)
JEL-codes: F13 F14 O24 O25 (search for similar items in EconPapers)
Date: 2011-11-29
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