Exports from special economic zones (SEZs) are expected to cross Rs four lakh crore in the current financial year from Rs 3.65 lakh crore in the previous fiscal, a senior official today said.
"SEZ achievements are substantial. In the first quarter of this fiscal, the exports grew by 64%. We will reach over 4 lakh crore this year," Joint Secretary in the Ministry of Commerce Anup Wadhawan said here at the CII Export Summit.
During April-June 2012-13, shipments from the tax-free enclaves were Rs 1.18 lakh crore.
Chairman of CII's National Committee on Exports and Imports Sanjay Budhia said although global demand has slowed but the new markets are yielding good results for Indian exporters.
However, Wadhawan said in terms of growth of exports from "modern manufacturing", the
SEZ concept is not a success story.
"If you want modern manufacturing, then it (SEZ) is not a complete success story," he added. He said most of the exports from SEZs are from services sector followed by petroleum and gems and jewellery and these are "our traditional sectors". He also said these zones are confined only to few states and urban agglomerates.
Wadhawan said there is a need to look at issues like regulatory matters, land, incentives and the time gap between a zone getting notified and starting operations.
In terms of giving user friendly environment for investors and simple operating rules "perhaps we have not been completely successful and we have to look into that", Wadhawan added.
The joint secretary said there is a need to focus on manufacturing sector to create more and more employment as the country's economy can not depend only on services sector.
"We can not afford to miss the manufacturing bus," he added.
Out of 588 approved SEZs, or export hubs, 386 are notified and only 158 are operational.
However, these zones have lost sheen after imposition of certain levies and proposal to take away tax incentives. The government had imposed Minimum Alternative Tax (MAT) and Dividend Distribution Tax (DDT) on SEZs in 2010-11, which were earlier exempted from almost all levies.
The tax incentives were the main attraction for setting up of these export enclaves. To boost investors confidence in these zones, the government is planning incentives for developers who want to set up SEZs in remote and undeveloped areas.
Speaking at the function, Export Credit Guarantee Corporation of India Ltd Executive Director Geetha Muralidhar said the company is helping Indian exporters to retain their traditional markets even during the time of global economic slowdown.
Source : moneycontrol.com