Friday, March 21, 2008

SEZ

Special Economic Zones.. as we are all aware are thriving all across the country. They are supposed to be the hub of infrastructure development, zones wherein taxes will be slashed, infrastructure will be developed for the upbringing of the region. Theplan was to boost the development throughout the nation. But the scenario is taking ugly turn in uneasy number of places. Be it the protest for use of cultivable land for SEZ, or the thoughts of polarising development, the news isnt heartening enough.

There has been talks that development of SEZ will develop the zone but will end up in being responsible for the under-development of other places. Simply said, if a businesman is getting to set up his business in SEZ at reduced taxes, will it not refrain him of thinking of the other regions, where the taxes imposed are higher? Will that not lead to a situation where a small section of our country will be developed but the rest will not.. and that too when resources from all over will be sucked up??

Already the news of forceful posession of the cultivable lands for these zones is hitting the air.

The concept seeems to be good enough on part of the planners but is it being properly IMPLEMENTED?

What do you guys have to say in this?

1 comment:

Dhruv Agarwal said...

SEZ is a concept started by China to boost its manufacturing industry and it has been very effective. Their growth rate of the domestic sector is more than 11% and it is a major contributor to their booming economy ( which has a growth rate of over 10%). But has the question here is why did it work so well for china whereas India is having so much trouble implementing it??
The answer to this question lies in the difference in the administration of the two countries. India is a democracy-of the people, for the people, by the people. On the other hand China is a Communist country. Hence Chinese government can take the boldest of the decisions without worrying about their people. And that is why India is having so much trouble implementing SEZs.
Now, the question is "Are SEZs actually worth all this hullabaloo ?"
From our point of view there is no reason why anyone should oppose SEZs. I mean, lets look at the bigger picture. We are a booming economy. And we need to have all the means to become a super power. SEZs will contribute big time to the Indian economy. They will provide jobs to thousands of people. It will also result in the development of those underdeveloped, underprivileged areas.And India will someday become a developed nation. SEZs are a stepping stone to that path.
But what about those thousands of people who ll loose their land-agricultural or otherwise. Won't it just reinforce that clichéd satatement- Rich getting richer and poor getting poorer. Are the people, whose land has been snatched- being compensated monetarily? What about the land itself? Is it agricultural? Then why is it being used for SEZs? Agricultural is one of the most important factors of Indian growth. It is the livelihood of millions. And are'nt we being plain selfish in asking them to give up their lands, their means of livelihood, without giving them enough compensation, so that Industries can be setup.
..................
The debate can go on forever, but that won't be a solution this problem. May its time for us to look at thing rationally, objectively. Maybe..............