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In order to enhance foreign investment and promote exports from the country and to provide liberal facilities to the foreign and domestic investors, the Special Economic Zones were created in India. The Government of India had in April 2000 announced the introduction of Special Economic Zones policy in the country, deemed to be foreign territory for the purpose of trade operations, duties, and tariffs. As of 2007, more than 500 SEZ have been proposed, 220 of which have been created. India passed Special Economic Zone Act in 2005.
The policy provides for setting up of SEZs in the public, private, joint sector or by state governments. It was also envisaged that some of the existing Export Processing Zones would be converted into Special Economic Zones. Accordingly, the government has converted Export Processing Zones located at: (i) Kandla and Surat in Gujarat, (ii) Cochin (Kerala), Santa Cruz, (Mumbai—Maharashtra), Falta (West Bengal), Chennai, Ilandaikulam, Nanguneri and Tirunelveli (Tamil Nadu), Vishakhapatnam (Andhra Pradesh), NOIDA (Uttar Pradesh), Rajiv Gandhi Info Tech Park, Hinjewadi, Pune-Maharashtra, and Indore (Madhya Pradesh).
At present, India has 81 units in operation in 8 functional SEZs, each with an average of 200 acres. Eight Export Processing Zones (EPZs) have been converted into SEZs. These are fully
The sustenance, prosperity, and development of the private sector and the rest of the economy today is closely dependent on how well the public sector functions. Castigating the public sector, however, is futile. The public sector, thus, has come to stay as an essential component of the economy. What is required is an objective analysis of what ails the public sector in India and the formulation and enforcement of remedial strategy.