Sagarmala and Coastal SEZsMay 29, 2018
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.