Special economic zones have generated employment for 1.46 lakh people in two years, while exports have doubled during the first nine months of this fiscal to touch $10 billion (Rs 40,000 crore).
"It has been two years since the Special Economic Zone Act and rules came into effect. While exports have grown almost 100 per cent to touch Rs 40,000 crore (Rs 400 billion) in the first nine months of the current fiscal, total incremental employment generated by the operational SEZs after February 2006 is 146,128," according to the Export Promotion Council for EOUs and SEZ.
Total incremental investment during the same period is over Rs 70,416 crore (Rs 704.16 billion), of which about Rs 67,347 crore (Rs 673.47 billion) has been invested in the newly notified SEZs.
Currently, 42 SEZs are operational in the country, while 197 zones have been notified and 138 have got in-principle approval.
"In order to further utilise the full potential of SEZs there is need to operationalise and establish the remaining SEZs. India needs to acknowledge that SEZs require stability and continuity of schemes to maintain and accelerate the growth rate," EPCES Director-General Lalit Singhal said, adding that exports from SEZs are likely to cross Rs 100,000 crore (Rs 1,000 billion) in 2008-09.
Singhal, however, said certain issues need to clarified to ensure the growth momentum in the SEZs is maintained.
"While there is need to clarify that turnover of the undertaking within the SEZ and not income of the assessee should be considered for the purpose of tax exemption, other procedural issues like improved single window mechanism at the state level should be addressed," he said.
