| Date: |
27-01-2016 |
| Subject: |
Govt plans China-type economic zones |
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NEW DELHI: The government is drawing up plans to build mega coastal economic zones, hoping to replicate China's success with such enclaves to boost exports and command a global presence in leading markets in several sectors, particularly electronics and textiles.
Sources in the government said discussions are on to ready a plan to build these zones in states such as Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh.
"These zones will be like special economic zones and will be located along the coast. So far, the emphasis has been on serving the domestic market but with these zones Indian products can be shipped to global markets," said a senior government official, who has direct knowledge of the plans. Concessions will be provided to help build these zones. Sources said current incentives for the electronics sector can be applied to units in these enclaves. The government has at least twice in the past attempted the model. In 1960s it first conceived of export processing zones, along the coast in cities such as Kandla, Mumbai and Chennai, with Noida being the sole inland zone.
Then in 2000, India conceived of special economic zones, developed by the private sector, with tax and other incentives thrown in. The experiment worked until the finance ministry decided to reverse the rules despite a law promising the sops. The UPA government then started work on a Petroleum, Chemicals and Petrochemicals Investment Region in Andhra Pradesh, but the project did not take off.
The coastal zones are expected to be a step forward although it is still unclear if the government is willing to walk the extra mile by easing labour laws and offering other concessions.
Government sources said the plan is to push the Make in India initiative along with job creation. It is expected to complement the government's initiative on port development and also help build cities around these new zones. "If China has been able to capture global markets why can't India?" said an official. There is a view within the government that India can emerge as a large player in the electronics and electrical segments and reduce its dependence on imports. Similarly, India can hope to regain prominence in some of the markets in textiles, where other small countries have made large inroads.
The plan comes at a time when there is concern about the trajectory of the country's exports. Exports have contracted for the 13th consecutive month and there is an effort to cast the net wider for Made in India goods.
Source : timesofindia.indiatimes.com
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