SEZs TO BOOST INFRASTRUCTURE AND INDUSTRY
- By:property vertical
The SEZ Act 2005, which came into force on February 10, 2006 is expected to facilitate large flow of foreign and domestic investment to the SEZs, and contribute to improvements in infrastructure and productive capacity, generation of additional economic activity and creation of employment opportunities .
The SEZs are envisaged to act as catalysts for growth. The simplification of the procedures for development, operation and maintenance of the SEZs and the fiscal incentives are expected to spur investment and promote industrial activity.
SEZs are likely to create large scale direct and indirect employment. The total employment that would be created by December 2007 is 500, 000.
Foreign Direct Investment (FDI) of the order of Rs 25,000 crore (US $ 5 to 6 billion) is also expected by the end of December 2007 in infrastructure development of the SEZs and in setting up of the units in the Zones.
Union minister of commerce and industry, Kamal Nath said at the India Economic summit that Special Economic Zones (SEZ) will boost
employment and allow Indian companies operating within the SEZs to compete globally.
Striking a positive note for the SEZs, Mr. Nath said, “One of the major initiatives taken this year has been the facilitation of the SEZs. They offer tax
incentives for manufacturing and services export and provide an enabling environment for the private sector to develop world-class standards of infrastructure and facilities.
SEZs will allow companies operating within them to compete globally. India has emerged as a manufacturing hub of the world. The Indian economy has grown rapidly and even the Rural India today is consuming more TVs, refrigerators, computers, cars, mobile phones, packaged food and consumer durables today than ever before.
The Government of India should have the vision and commitment to accelerate the rate of economic growth by maximizing investment in industry and infrastructure in SEZs. The objective is to give a boost to manufacturing, productivity, competitiveness and employment generation.
Emphasis will be on enhancing the employment of the people and creating the right climate for all these to happen. The potential of the services sector will also have to be harnessed fully for economic development of the country. The commitment of the Government is to translate this vision into actuality within a time frame.
India has become a major focal point in attracting new investments. There is however infrastructure gaps which need to be addressed. The Central and State Governments should be able to identify infrastructure projects and to pursue implementations with the goal of transforming India into a World class investment destination.
Industrial hubs and IT Parks should be set up in Tier II cities. The growth potential of the various regions should be fully harnessed. Efforts have to be made to exploit and tap resources for meeting the energy requirements of the country to set up industries.
Above all these, the human resource of India is the real asset. The government has to make use of the strength to promote new investments. There is need for collaboration between public sector, civil society and industry to usher in social transformation. An alliance of the public sector and civil society is necessary for social transformation. Industry must be an integral part of the alliance.
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