Special Economic Zone: Reasons for failure

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SEZ-2

Reasons for failure
  • Free Trade Agreements take away special benefits; more over they get disadvantaged domestically!
  • Very small size and huge multiplicity of SEZs lead to chaos
  • Due to introduction of Minimum Alternate Tax, firms started leaving SEZ
  • Poor infrastructure around SEZ
  • Inflexible land use policy within SEZ
  • Competitive Models: CEZ, NIMZ etc
  • Red Tapism
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