Need of SEZ's

Special Economic Zones (SEZs) can save the crumbling infrastructure of existing manufacturing cities to lend impetus to the country’s growth plans. A press release by Confederation of Indian Industries (CII) quoted President R.Seshasayee urging Indian industry to expand its horizons to decongest existing hubs across the country.
Existing industrial cities are buckling under pressure, and new SEZs located at reasonable, but not close proximity could supplement their activities. The construction of the SEZ ideally ought to cover an area large enough to meet all the requirements of the resident population.

SEZs would necessarily have to be multi-product in nature, providing for economy of costs. Manufacturing costs have a high element of tax embedded in them, and the new mega SEZs should address this issue. Inadequate infrastructure has added to prices, and the new economic zones with better planning should definitely help make our products more competitive, feels Seshasayee.

Is Government involvement necessary in establishing these SEZs? It had best be left to market forces, according to Seshasayee, but incentives for private investors would attract investment in select zones. Incentives on the lines of those offered to EOUs and EPZs, which have proved profitable to all small and medium companies who set up shop there, must be extended to these new SEZs as well.