Special Economic Zone and Regional Development

Abstract

Indian economy is a developing and an emerging economy by having surplus man power. Demographic dividend will be achieved fruitfully by utilising the surplus manpower with the help of inviting foreign direct investment at a broader level. Moreover developing countries are not able to compete with the developed countries in terms of technological efficiency, skilled manpower and adequate capital. India is facing severe problems of capital deficiency, poverty, unemployment and regional differences. Moreover India’s exports in the world trade stands just 1 percent. Despite having a huge population china has achieved higher economic growth rate by introducing the special economic zone in manufacturing sector in late 70s and early 80s, whereas India has initiated the launch of liberalisation and the globalisation policies by following china’s footsteps in the early 90 s and the latter years. This paper attempts to analyse impact of special economic zone in generating employment, output, regional development and exports of the country in the reform period.