Location of SEZs in India not strategic: World Bank

Special Economic Zones (SEZs) in India are bereft of geographical advantages as they are not well located as in China, the World Bank has said in its study.

“A cursory glance at India’s SEZs suggests that they were not nearly as well located,” the bank said while comparing with Chinese SEZs in its ‘World Development Report’ 2009. It added “poor location is the main obstacle to success.” In 2007, SEZs were approved in the coastal states of Andhra Pradesh, Gujarat, Maharashtra and Tamil Nadu, as well as in the interior states of Haryana, Punjab and Rajasthan, the report highlighted. “Even in the coastal states, many SEZs are not along the coast,” it noted.

“It seems to matter more where the zones are located, not who owns and operates them,” the report said. Taking a dig at India’s policy to encourage industry in the backward areas, the bank said, “Even after more than 30 years of draconian regulation, few districts in the backward areas became major industrial centres.”