The Baba Kalyani headed committee presented the Special Economy Zone (SEZ) policy report to the Union Minister for Commerce.
About:
Composition: The committee was headed by Baba Kalyani, Chairman, Bharat Forge Ltd.
Mandate of committee: The committee was constituted by the Union Ministry of Commerce & Industry in June 2018 to –
Evaluate the SEZ policy and make it WTO compatible,
Suggest measures for maximizing utilisation of vacant land in SEZs,
Suggest changes in the SEZ policy based on international experience and
Merge the SEZ policy with other Government schemes like coastal economic zones, Delhi-Mumbai industrial corridor, national industrial manufacturing zones etc.
Key highlights of report:
The current environment of manufacturing competitiveness and services has to undergo a basic paradigm shift if India is going to become a USD 5 trillion economy by 2025.
The success seen by services sector like IT and ITES has to be promoted in other services sector like health care, financial services, legal, repair and design services.
It has recommended continuation of tax incentives, migration of SEZs to employment and economic enclaves, and creation of link infrastructure and maintenance for enclaves.
Also, incentives should be linked with employment, investment, technology/innovation, and infrastructure status for these zones to improve access to financing.
Way ahead: Commerce Ministry will soon begin consultations with the Finance Ministry and other Ministries to implement the committee’s recommendations.
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