Growth impact of SEZs in Gujarat

Abstract

Special Economic Zones (SEZs) are growth engines that can boost manufacturing,

augment exports and generate employment, thus boosting industrial growth in an

economy. The current paper is a descriptive paper that describes the economy of Gujarat

from the point of view of SEZs. The paper highlights the geographic spread of SEZs in

Gujarat and gives facts about the number of SEZs (functional as well as non-functional)

in Gujarat State. Finally it describes the importance of SEZs in Gujarat by studying an

activity wise SEZ growth and seeing whether these SEZs have fostered only the basic

industrial set up of Gujarat or whether they have even helped to introduce new sectors

and industries (which do not have any history of past existence) to bring up the economy

of Gujarat state. Thus, for a state to rank number 1 from industrial point of view, it is

necessary that it innovates in its industrial set up and exercises new mechanisms (like

setting up SEZs) for industrial growth.