Tuesday, November 14, 2006

Comparison of SEZ policies of China and India

In an excellent article written by Amiti Sen, the comparison between Chinese and Indian SEZ policy is discussed. Read the full article as it appeared in The Economic Times here. I am giving below the salient points in a tabular form.

Issue

China

India

Size

Very big. Typically in hundreds of hectares.

Even 10 hectares will do.

Location

Well thought out and located only on coasts. To facilitate exports and imports easily.

Anywhere. No restriction.

Labour laws

Relaxed in the SEZs.

Flexibility is totally absent.

Policy regime

Experimentation of liberal policies in the specified areas while insulating them from the rest of the country.

Based on fiscal sops.

Investors

Basically foreigners who are wooed with sops and promise of stability in policy.

Basically locals. Not foreign investor driven; which should have been the case.

Commencement

In 1979

In 1969 with the export processing zone concept. But failed to muster courage in giving these regions foreign territory status till the year 2000 when Murasoli Maran announced the SEZ policy.

Number

Only six: Shenzhen, Zhuhai, Shantou, Xiamen, Hainan and Pudong

Any where and any number. So far 28 operational. About 200 received approvals.

Tax holidays

Present.

Longer and steeper than in China.

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