International Perspectives of Special Economic Zones with Special Reference to India and China

Abstract

The concept Special Economic Zones is a global phenomenon. All over the world, Special Economic Zones are playing a vital role in the industrialization. The concept of Special Economic Zones is based on the frame work of the cluster approach. Economic Zones are considered as industrial clusters where industrial and business units realise economies of scale and other advantages which help in reducing the cost of production of the operating units. Due to large concessions provided by the State like removal of bureaucratic controls availability of infrastructural facilities, tax concessions, non-application of labour laws many countries adopted this device to
increase employment and income generation and to industrialise the nation. The number of Special Economic Zones globally continues to expand. SEZs account for an increasing share of international trade flows and employ a growing number of worker’s worldwide. According to Seth Associates, in 2007 there were more than 3000 Special Economic Zones operating in 120 countries which account for over US$ 600 billion in export and about 50 million jobs. In the global economy, SEZs are viewed as an investment to promote industrialisation, generate employment and for regional development.