Exports from SEZs up marginally at Rs 4.67 lakh crore in FY16

India's overall exports in rupee terms registered a dip of 9.89% in last fiscal due to global demand slowdown

Exports from special economic zones (SEZs) logged a marginal growth of 0.77% to Rs 4.67 lakh crore in 2015-16.

The exports from such 204 zones were Rs 4.63 lakh crore in 2014-15, according to the data of the Commerce Ministry.

"Overseas shipments from these zones have recorded a positive growth in the last fiscal, this means that there is a potential to boost the country's total exports from these zones. We need to focus here," an official said.

The country's overall exports in rupee terms had registered a dip of 9.89% in the last fiscal due to global demand slowdown particularly in India's traditional market such as the EU.

Industry experts said taking into account the figures, the government should take some immediate steps to boost exports from SEZs.

"The reason for positive growth in SEZ exports are easy way to do business in these zones. It has huge potential but the government will have to extend support to us like rollback or cut in the minimum alternate tax (MAT)," Export Promotion Council for EOUs and SEZs (EPCES) Vice-Chairman Rahul Gupta said. EPCES is the apex body of special economic zones.

He said in the current fiscal, exports from SEZs would only improve if the government give special focus in resolving the taxation issues.

"We are hopeful that the commerce ministry would take the issue of SEZs with the Finance ministry to boost the exports," he said adding at the time when the government is putting special emphasis on generating new jobs and pushing manufacturing activity in the country, "the SEZs needs special attention".

About the duty forgone issues from these zones, another expert said that the view of the Finance Ministry on this is not logical.

As per the Commerce Ministry's data, as on March 31, these zones have attracted investments worth Rs 3.76 lakh crore and has generated employment to 15.91 lakh people.

Highest number of SEZs are operational in states like Tamil Nadu, Karnataka, Telengana and Maharashtra.