“Both of these significant changes in the SEZ policy are imperative to provide Indian exporters a level-playing field and these should be included and be implemented as part of the new government’s immediate economic agenda,” said D.S. Rawat, secretary general of ASSOCHAM while releasing the chamber’s paper.
“If immediate action is taken by implementing these corrective measures it would restore investor confidence and bring back SEZs to the forefront of economic and industrial development,” said Mr Rawat. “Restoring confidence of domestic manufacturing sector by providing a stable policy environment would promote competitiveness as SEZs can be the vehicle to boost manufacturing exports from India and catalyse revival of Indian economy.”
Besides, global markets are showing strong trends of revival after a prolonged spell of subdued and in some cases, negative growth, noted the ASSOCHAM paper. “India has the opportunity to reclaim its position as a world class, competitive global manufacturing power.”
Frequent policy changes have eroded the investors’ confidence in SEZs thereby severely affecting the overall potential of SEZs to provide significant boost to investments, exports and employment in India thereby virtually reducing it to a non-starter, noted the paper prepared by the ASSOCHAM Economic Research Bureau (AERB).