SEZs expected to attract $23 bn this year
New Delhi : India's Special Economic Zone (SEZ) policy, though facing flak after protests over land acquisition, is expected to attract investments worth up to Rs.1 trillion ($23.36 billion), including foreign capital worth $5-6 billion, by December 2007, according to official estimates.
The SEZs are also estimated to create over 500,000 jobs by the end of this year, the annual report of the ministry of commerce and industry said Tuesday.
The government has given a formal approval to 234 SEZs, out of which 63 have been notified, which have already witnessed Rs.134.35 billion investment in less than a year and generated 18,457 jobs, it said.
The report enlisted various benefits in the setting up of an SEZ, such as employment generation, greater economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources and infrastructure development.
Touching upon the growth in exports, it noted that due to the high rate of competition in sectors such as engineering goods and high prices of petroleum and metals, Indian exports were able to reach $89 billion during the first three quarters of fiscal 2006-07.
In fact, the sustained high growth rate of merchandise exports at more than 20 percent during the last four years is more than twice that of GDP growth, it said.
With the establishment of a special purpose tea fund (SPTF) under the aegis of the Tea Board of India, the government has also focussed on the plantation sector.
This is aimed at funding replantation and rejuvenation of old tea bushes with the goal of long-term development of tea industry.
On the issue of pushing forward the development agenda in global trade talks, the report said India had reached a significant milestone in resuming the Doha round of negotiations in the general council meeting held at Feb 7.
During the financial year 2006-07, the India-Singapore Comprehensive Economic Cooperation Agreement (CECA) was also reviewed for proper implementation of the agreement.
The year also saw the signing of a bilateral trade agreement with Australia for enhancing trade and investment.
