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Special Economic Zone (SEZ)
SWOT Analysis
Made By-
SONIA MEHTA
PGD11106
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History of SEZ
India was one of the first in Asia to
recognize the effectiveness of the Export
Processing Zone (EPZ) model in promoting
exports, with Asia's first EPZ set up in
Kandla in 1965.
With the same intentions and view to attract
larger foreign investments in India, the
Special Economic Zones (SEZs) Policy was
announced in April 2000.
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SEZ ?
A Special Economic Zone is a
geographically bound zones where the
economic laws in matters related to export
and import are more broadminded and
liberal as compared to rest parts of the
country. SEZs are projected as duty free
area for the purpose of trade, operations,
duty and tariffs. SEZ units are self-
contained and integrated having their owninfrastructure and support services
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OBJECTIVE of the SEZ Act
Generation of additional economic activity
Promotion of exports of goods and services
Promotion of investment from domesticand foreign sources
Creation of employment opportunities
Development of infrastructure facilities
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List of Developerswho have set up SEZs
Nokia SEZ in Tamil Nadu
Quark City SEZ in Chandigarh
Flextronics SEZ in Tamil Nadu
Mahindra World City in Tamil Nadu Motorola, DELL and Foxconn
Apache SEZ (Adidas Group) in Andhra
Pradesh
Divvy's Laboratories, Andhra Pradesh
Rajiv Gandhi Technology Park, Chandigarh
ETL Infrastructure IT SEZ, Chennai
Hyderabad Gems Limited, Hyderabad
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SWOT Analysis for Indian SEZs
Strengths
A large and growing domestic market.
Growing middle class with purchasepower
Indias large English speakingworkforce
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Strengths
Relatively low labour costs
Worldwide acceptance of capabilities infields like:
1. Pharmaceutical manufacturing &research
2. Clinical trials
3. Manufacturing auto parts
4. Engineering designing & consultancy,IT
5. Entertainment
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Weaknesses
Inadequate institutional support
Labour reforms
Inappropriate locations Infrastructure bottlenecks
connecting infrastructure like
Roads leading to SEZs. Political changes
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Opportunities
To use SEZs to catalyze infrastructuredevelopment.
New small ports & airports are alsobeing developed keeping SEZ conceptin mind.
Realistically establish competitiveadvantages in SEZs.
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A large NRI base who have traditionallyinvested less in Greenfielddevelopment in India.
Lower the high transaction /behind theborder costs to exporters.
Tap the advantages of WTO/increaseIndias small share of world trade.
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Opportunities
To increase investments in core strengthareas like IT and software products and
services.
An alternative manufacturing base,particularly compared to Chinese SEZs.
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Threats
Loosing edge of low labour costs -many countries are competing.
The pattern of buying & selling may notcontinue. With relocations of industriesin other third world countries, new
competitors will emerge.
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CONCLUSION
It is expected that this will trigger alarge flow of foreign and domestic
investment in SEZs, in infrastructure
and productive capacity, leading to
generation of additional economicactivity and creation of employment
opportunities.
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THANK YOU