DESH & 'videsh'

The proposed Bill will create asymmetries

The commerce ministry’s Development Enterprise and Services Hub (DESH) Bill, 2022, has reportedly run into strong objections from the finance ministry over extending tax concessions to special economic zones (SEZs). North Block has argued that these breaks would “create havoc” for units outside the zones. Even if it were accepted that the finance ministry is arguing from the revenue maximisation perspective, its basic contention is spot on for multiple reasons. The DESH Bill seeks to replace the ill-fated SEZ Act of 2005, the United Progressive Alliance’s attempt to emulate China’s export-driven manufacturing strategy that transformed that country within a mere