A Study on Key Ideas behind Developing Special Economic Zones in India

Abstract

The idea behind developing special economic zones in India was to attract more foreign direct investment, which was supposed to increase employment opportunities for the population. The SEZs are the most visible part of this strategy, with an emphasis on manufacturing activities. The current study aims to understand key ideas behind developing special economic zones in India. The study is based on secondary source of information. The study concluded that social and political issues faced by Special Economic Zones in India, such as poverty, low quality infrastructure, unemployment and caste-based discrimination were hindering development. The study suggested that Special Economic Zones suffer from a lack of coordination amongst the different central and state government schemes offered to the residents of these zones. The study suggested that there can be a major improvement in their performance through proper planning, better coordination between different ministries and combined efforts of various agencies involved with these units.