Special Economic Zones in India: White Elephants or Race Horses

Abstract:     
On the basis of economic theory and history we can conclude that absorption of agricultural labour is necessary for sustained economic development of a developing country. Special Economic Zones (SEZs) constitute a medium for such sustenance. However, the SEZ policy in India has suffered from permission being granted for far too many sub-optimally sized SEZs or for others serving as appendages to mega cities and therefore inheriting all the diseconomies associated with the large size of the latter.

Keywords: Special Economic Zones, Absorption, Employment

JEL Classifications: O10, O40

Working Paper Series