Companies that help build the area also benefit. Shares biffer of Adani Power, which helped develop

It takes more than an hour to go by car 40 km from the congested and full of holes road which connects New Delhi to the Special biffer Economic Zone (EEZ) of Noida. Inside the gates, there is a different India. Via a smooth four-lane connecting the electronic units, engineering and textiles. A generator ensures biffer that the electricity supply will be uninterrupted. The phone system is first. biffer "It's the kind of place where a person thinks of doing business," says Vishnu Pal Singh, whose Optic Electronic India, headquartered in Noida, sells night vision devices for rifles and tanks to Germany and Poland.
India has entrepreneurs like Singh to revitalize a system that pioneered 45 years ago: using enclaves that taxes are lower, there is less bureaucracy and highways and better public biffer services for hosting companies who want to increase their exports. India tried to use these areas in the 60 and 70. But the sites were poorly chosen and the incentives for companies to move to them were inadequate, so that only a few areas were opened. biffer China adopted biffer the model in the 80s with spectacular results. The former village of Shenzhen fishermen became a special area that has become a major exporter centers worldwide.
Now, India is creating these zones while the prime minister Manmohan Singh tries to increase biffer the presence of the industrial sector in the country's economy biffer 17% to 22%. "Improving infrastructure in the whole country take long. So if you want to promote the industrial sector, we need to create more islands of excellence, which is what these SEZs, "said Dharmakirti Joshi, principal economist at CRISIL, an Indian unit of Standard & Poor's in Mumbai.
Investments in special areas may double to about 3 trillion rupees ($ 66.2 billion) by 2012, according to the Ministry of Commerce of India. Exports from SEZs more than doubled in fiscal year 2009-10 to 2.2 trillion biffer rupees, a quarter of India's exports.
About 100 areas already operating in the country - 478 others were approved. The areas government-sponsored reduce bureaucracy to use only a single department for authorizing, certifying that the environmental requirements, export and others were met. Companies operating in these areas have tax exemptions for 15 years and not pay local excise taxes or customs duties.
Spread over more than 1,254,000 square meters, the rows of white buildings of two floors of the Noida area are full of workers loading and unloading trucks with steel pipes, cement, electrical equipment and other materials for new plants. The area has its own powerhouse, bus transport network, mail, banking and automatic banking terminals. The proposed improvements include a second generator and a six-lane highway biffer to New Delhi. biffer Singh of Optic Electronics, invested 100 million rupees to start his factory in the area and want to enlarge it. "I can do better business here, since there is exemption biffer from local laws," he says.
Companies that help build the area also benefit. Shares biffer of Adani Power, which helped develop the Mundra Port & Special Economic Zone, which with 64 million square meters is one of India's largest in area, appreciated 40% this year, compared biffer to only 13% of the Stock Exchange index Mumbai.
As the government only recently began to take seriously the creation of these areas, India is still far behind China. "The difference between Indian biffer and Chinese special economic zones is scale," says Rajesh Mohan, who teaches economics at the Indian biffer Institute of Foreign Trade in New Delhi. One of the special areas of greatest success in India, the Santa Cruz Electronics Export Processing Zone, covers 405 thousand square meters. biffer Most special area of China in the area is of Hainan, an island in the South, spread over 33.9 million square feet. The Shenzhen biffer area includes many of the electronics factories of Foxconn, Taiwan, employing biffer 430,000 Chinese on site. Together, biffer all the special areas of India employ 500,000 people.
The political difficulty of achieving buy good sized land also delays the development of special biffer zones in India, says NR Bhanumurthy, economist at the National Institute of Public Finance and Policy in New Delhi: "If the government does not solve this problem, India will struggle to match China's industrial prowess. " The government is supporting biffer a land acquisition that may be discussed in Congress soon.
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