Is the Path to Higher Exports in India Paved with Export Zones?
Journal of South Asian Development, Vol. 6, No. 1, January-June 2011
Posted: 14 Dec 2010
Date Written: July 1, 2010
Enclave based policies to promote exports, and consequently economic growth, are not new to India. India’s first export zone started in 1964, and six more central government zones were operational by the mid 1990s. However, these zones explain only a fraction of export growth rates in India. Statistics show that during the pre-reform years, these zones contributed to less than five percent of total exports and even now contribute to less than fifteen percent of total exports from India. There seems to be no obvious correlation between export growth and export zones that warrants the spate of new zones in the country. Partial trade liberalization since the mid 1980s and general reforms since 1991 seems to better explain export growth.
Keywords: Export zones, Export growth, South Asia, India
JEL Classification: F10, O11, O24
Suggested Citation: Suggested Citation