Biotech, plastic exports from SEZs top growth charts

Biotechnology has emerged as one of the fastest growing commodities in terms of export growth from special economic zones (SEZs) due to entry of new players, who are in to take advantage of the tax holidays.

Data compiled by the Union commerce ministry shows that biotechnology exports from SEZs grew 58 per cent in April 2018 to Rs 2.23 billion from Rs 1.41 billion in the corresponding month last year. 

Plastics and rubber witnessed the sharpest growth of 63 per cent to Rs 3.44 billion in April 2018 against Rs 2.11 billion in the same month last year.

The healthy growth in biotechnology exports from SEZs assumes significance in the wake of growing health consciousness across the world. This resulted in increasing consciousness in the quality of products available in the export-centric zones. 

In the last one year, SEZs have witnessed dozens of new company registrations for setting up units in this notified area.

“Biotechnology has been one of the key growing areas for exports from SEZs due to increasing number of new companies setting up their units in these export-centric zones. 

Growing health consciousness across the world has boosted biotech exports from SEZs and we expect this to continue,” said Vinay Sharma, officiating chairman of Export Promotion Council for export-oriented units (EOUs) & SEZs.

The overall business of exports of products and services in 204 SEZs has clocked a 17 per cent growth in April 2018 to Rs 514.40 billion compared to Rs 441.02 billion in the corresponding month last year. 

Of the total exports, software and merchandise contributed to Rs 208.92 billion and Rs 205.48 billion for April 2018 against Rs 246.14 billion and Rs 194.88 billion for the same month last year.

“Tight global competition from established and upcoming free zones from almost every country has not acted as a deterrent to the growth velocity,” said Sharma.

Sharma added that SEZs provide favourable conditions for growth of the manufacturing and services industry. It has eliminated unwanted policies and reduced delay in orders.