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 | | |
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, | Any where and any number. So far 28 operational. About 200 received approvals. |
Tax holidays | Present. | Longer and steeper than in |
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