Sagarmala and Coastal SEZs

Sagarmala and Coastal SEZs

May 29, 2018 0 By Xamnation Editor

In general Special Economic Zone (SEZ) are areas within National border of any country but with different trade & business law with an aim to boost production, export employment etc. It can include:

  • Free trade zones
  • Free economic zones
  • Free parts
  • Exports processing zones
  • Industrial parks
  • Bonded Logistic Parks
  • Urban Enterprise zones

Sagarmala initiative of government aims to helping SEZs through creating coastal infrastructure. Asia’s first SEZ located at Kandla , Gujarat has not be able to perform well vis-à-vis near neighboring countries., Korea’s Incheon , Bangladesh’s Chittagong, Malaysian , Singapore , etc have skyrocketed in development but the India still lags behind.

Despite huge in numbers , India SEZs have not been able to perform well in driving economic growth.. The very aim for development of our SEZ was tax avoidance, raising exports & employment to the periphery.Recently, Large number of IT zones emerged recently.

Infrastructure issues:  Reason for outperforming SEZs of other Asian countries is connectivity. And this issue of connectivity is  a major problem with India. Due to this issue our manufacturing SEZs located in hinterland have to bear huge logistic cost which in-turn decrease export competitiveness. Thus coastal connectivity of SEZs are needed.

Political will: Due to lower political will, implementation of schemes & programmers framed are poorly implemented which cause time and cost overrun .

Finally new initiative – Sagarmala is launched to connect coastal SEZs with ones in hinterland.  This will help in following ways:

  • Addresses problems like poor linkages , underperforming existing port infrastructure & lack of port infrastructure
  • Focuses on port-led development with framework for its stakeholders.
  • Works for modernizing port infrastructure
  • Develops integrated transport infrastructure.

Today India’s labor intensive industries need export oriented industrialization which will farther lead to urban & rural development. Thus Sagarmala,  if implemented properly , can definitely a move to be a turnaround for under-performing SEZs.