Special Economic Zones: Legal Issues
SEZ: Does the Act ensure what the policy intends ?
Dr.V.M.Govilkar
M.Com.,LL.B.,F.C.A.,Ph.D.
vgovilkar@rediffmail.com.
4,Lokmanya Nagar,
Gangapur Road, Nasik.422002.
Exports as real contributor to forex reserve
India has recently got the honour of being one among the few countries in the world having foreign exchange reserve of more than 200 billion dollars. However during past six decades India has no trade surplus; all the times the exports have been less than the imports. Hence though there is quantitative increase in forex reserves, qualitative improvements is yet not seen. The foreign investors have found India a relatively safe & profitable destination to park their funds. That’s all! Long-term improvements in forex reserves is achieved only by positive trade surplus of considerable amount for considerably long period. Obviously all the countries try to increase their exports on one hand and to minimise their imports on the other hand.
Limiting imports may not be possible due to many reasons viz. the stage of development of the economy, the development of technology, availability of natural resources etc. Hence to achieve positive trade surplus, the real solution is to maximise the exports. Indian Government has also tried to increase exports by announcing & implementing many schemes. To mention few of them-- export financing at concessional interest rates, income tax exemption for export income, transport & storage facilities at concessional rates, etc. The latest policy adopted and largely debated for export promotion is that of ‘Special Economic Zones’.
The following are some of the factors limiting exports.
i. Insufficient and low quality infrastructure. ii. Limited domestic capital formation & restrictions on foreign capital. iii. Administrative hurdles, and complexity. iv. Complicated & Labour friendly labour laws. v. Many taxes and high rates of taxes.
These hurdles cannot be
Dr.V.M.Govilkar
M.Com.,LL.B.,F.C.A.,Ph.D.
vgovilkar@rediffmail.com.
4,Lokmanya Nagar,
Gangapur Road, Nasik.422002.
Exports as real contributor to forex reserve
India has recently got the honour of being one among the few countries in the world having foreign exchange reserve of more than 200 billion dollars. However during past six decades India has no trade surplus; all the times the exports have been less than the imports. Hence though there is quantitative increase in forex reserves, qualitative improvements is yet not seen. The foreign investors have found India a relatively safe & profitable destination to park their funds. That’s all! Long-term improvements in forex reserves is achieved only by positive trade surplus of considerable amount for considerably long period. Obviously all the countries try to increase their exports on one hand and to minimise their imports on the other hand.
Limiting imports may not be possible due to many reasons viz. the stage of development of the economy, the development of technology, availability of natural resources etc. Hence to achieve positive trade surplus, the real solution is to maximise the exports. Indian Government has also tried to increase exports by announcing & implementing many schemes. To mention few of them-- export financing at concessional interest rates, income tax exemption for export income, transport & storage facilities at concessional rates, etc. The latest policy adopted and largely debated for export promotion is that of ‘Special Economic Zones’.
The following are some of the factors limiting exports.
i. Insufficient and low quality infrastructure. ii. Limited domestic capital formation & restrictions on foreign capital. iii. Administrative hurdles, and complexity. iv. Complicated & Labour friendly labour laws. v. Many taxes and high rates of taxes.
These hurdles cannot be