SEZs, the new engines for export led economic growth in India, defined

as:

“Specifically delineated duty-free enclave and shall be

deemed to be foreign territory for the purposes of trade

operations and duties and tariffs” . . . EXIM

Policy 2000, Chapter 9 para 30

Extremely successful Chinese format to promote exports, attract FDI

and foster overall economic growth

Shenzhen SEZ, started in 1981, has achieved 38% GDP growth CAGR

(highest recorded so far) mainly due to:

Liberal economic framework

Integrated infrastructure at very competitive prices.

(a) Generation of additional economic activity

(b) Promotion of exports of goods and services;

(c) Promotion of investment from domestic and

foreign sources;

(d) Creation of employment opportunities;

(e) Development of infrastructure facilities;

A designated duty free enclave and to be treated as foreign

territory for trade operations and duties and tariffs

No license required for import

Manufacturing, trading or service activity allowed

SEZ unit to be positive net foreign exchange earner within three

years

Performance of the units to be monitored by a Committee headed

by Development Commissioner and consisting of Customs

No fixed wastage norms

Full freedom for subcontracting including subcontracting abroad

Duty free goods to be utilized in 5 years

Job work on behalf of domestic exporters for direct exports allowed

Contract farming allowed agriculture/ horticulture units

No routine examination by Customs of export & import cargo

No separate documentation required for Customs and Exim Policy

In house customs Clearance

Support service like banking, post office, clearing agents etc.

provided in Zone Complex

Developed plots and ready to use built up space

Central Govt SEZs

State Govt/pvt. SEZs

established prior

to SEZ Act, 2005

SEZs notified

under

SEZ Act,2005

Number of Formal approvals -- 579 Number of notified SEZs (as on 8th September, 2009) - 335(out

of 579) + (7 Central Govt. + 12 State/Pvt. SEZs) Number of valid In-Principle Approvals -147 Operational SEZs (As on 30th June, 2009) -98

April-June, 2009

Central Govt SEZs 18068.68

State Govt/pvt. SEZs established priorto SEZ Act, 2005

7557.2

SEZs notified under SEZ Act,2005 16875.88

Total 42501.76

Before SEZ Act,2005 Investment:-Rs. 5626.24 crore for

1143 operative units Employment:- Over 1.97 lakh

persons

Current Scenario• Investment:           Rs. 83450crore• Employment:        1,13,426 persons

174 approvals are for multi product SEZs -Textiles & Apparels, Leather Footwear, Automobile components, Engineering etc

Employment for large number of unemployed rural youth

Employment to 14577 and 1058 persons at Nokia and Flextronics electronics hardware SEZs in Sriperumbudur

Hyderabad Gems SEZ has already employed 2145 persons

IT/ITES SEZs which as per the NASSCOM standards translates into 12.5 lakh jobs

EMPLOYMENT (As on 31st March, 2009)

Incremental employment

Total employment

SEZs Notified under the Act

1,34,627persons 1,34,627persons

State/Pvt. SEZs set up before 2006

43,422 persons 55,890 persons

Government SEZs 74,686 persons 1,96,922 persons

Total 2,52,735 persons 3,87,439 persons

Year Value (Rs. Crore)

Growth Rate (over previous year )

2003-2004 13,854 39%

2004-2005 18,314 32%

2005-2006 22 840 25%

2006-2007 34,615 52%

2007-2008 66,638 92%

Exports in 2008-09 Rs.99,689 Crore(Growth of 50% over 2007-08)

Overall growth of exports of 620% in five years (2004-2009)

Exports in 2009-10 (As on 30th June, 2009) Rs. 42,501.76 crore

INVESTMENT (As on 30th June, 2009)

Incremental investment

Total Investment

SEZs Notified under the Act

Rs.1,04,589.3cr Rs.1,04,589.3 cr

State/Pvt. SEZs set up before 2006

Rs.4,901.27 cr Rs.6,657.58 cr

Government SEZs Rs.1,114.45 cr Rs. 3,393.65 cr

Total Rs.1,10,605.02 cr Rs.1,14,640.53 cr

Total investment of Rs.1,14,640.53 cr

Total Exports of Rs. 42,501.76 crore with 92% growth rate

3,87,439 persons employed

Doesn’t the figures speak for itself??