In order to boost exports, amendments in Special economic zones act need to be followed by better labour laws. Analyse (200 Words)
Refer - Financial Express
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IAS Parliament 3 years
KEY POINTS
· At a time when India is poised to breach the annual $400-billion target for exports, the move to change laws governing the Special Economic Zones Act comes as a big boost for the sector.
· About 270 SEZs are currently operational, though many more have been notified. In rewriting the SEZ legislation, the commerce ministry will be guided by the recommendations of the Baba Kalyani report, submitted in November 2018.
· India’s coastline of 7,517 km, abutting nine states, can be leveraged to develop large hubs or industrial clusters near deep draft ports to enable goods to be sent out.
· A lower duty would, no doubt, help boost sales. But it will neutralise the advantages that SEZs enjoy, being specifically delineated duty-free enclaves, vis-à-vis domestic manufacturers to ensure a level-playing field.
· To be sure, the changes to SEZs need to be accompanied by better labour laws and lower levels of protectionism.
· Ahead of the Budget, it was cautioned industry telling it to brace for increased competition and think global since India was going to sign a host of ‘very deep’ FTAs with advanced economies like Australia, the UK and the EU.
Manish 3 years
Please review !
IAS Parliament 3 years
Good attmpt. Keep Writing.
