Findings of EPCES: According to a Research study conducted by Export Promotion Council for EOUs and SEZ Units (EPCES) the Government Policy on Special Economic Zones is here to stay and is one of the most promising opportunities for generation of Employment, Economic Growth and Infrastructure Development for the country.
The study reveals that the International investors look towards India and China constituting almost 40% of the world population as the most opportune places for investments because of the inherent market potential as well as availability of youth that can be skilled for economic Growth. Both China and India have been registering over 10% of Growth in the industrial sectors.
The SEZ policy of the Government is gaining strong footing. The key finding of the study reveals that establishment of SEZs and the operation of the units in the few SEZs that have been established are having a positive impact:
Most of the States have their SEZs policies, Acts, Rules in place. However since the policy and guidelines are an evolving process the Centre as well as most of the States are working towards creating frameworks that further economic development and ensure rehabilitation of the affected families.
The Government's step to reformulate the Land Acquisition Act as well as evolve a Rehabilitation and Resettlement policy is in the right direction and once addressed in a comprehensive manner will accelerate the investments and economic activity. This needs to be taken up on an immediate basis as delays will deter investments.
No displacement of families in any of the functional SEZs, and none planned. Instead Training and Employment opportunities are being provided to the affected families.
The young population especially rural belonging to the area where the SEZs are established are being trained to take up jobs in the industries, thus merging the agriculture and industrial societies.
The development of enclaves requires that the infrastructure needs are addressed. This has created an awareness among the State Governments as well as local bodies to create adequate and strong infrastructure to support the economic activity to ensure their competitiveness in the global scenario.
Only 0.1% land is being used for Industrial activities in India.
With the participation of the Private Sector in the development of Industrial enclaves the study believes that the government can spend more time and money in creating infrastructure to support these activities
Most of the Developers interacted are willing to participate in the development of the surrounding social milieu and desire the Government policy on R&R as well as land acquisition are put in place at the earliest, so as to attract the eager Industrial investors to India.
A beginning has been made and if nurtured properly the SEZs can unleash tremendous growth potential.