The Falta & Cochin SEZ Record over 111% Increase in Export Growth

KOCHI:
The Export Promotion Council of India EOU and SEZ (EPCES) under the Ministry of Commerce, Government of India today announced that the business in the 204 Special Economic Zones (SEZ) have clocked 18% increase, year on year between 2016-17 and 2017-18.
This has been in spite of the challenges faced, with factors such as non-removal of MAT, imposition of Dividend Distribution Tax and impending sword of sunset Clause from 2020 (when the tax benefits will go away). Additionally the tight competition world over, from established & upcoming free zones from almost every country has not acted as a deterrence to the growth velocity.
The merchandise export from SEZs clocked 2,73,487 crores in April 2017-18 vs. 2,30,797 crores in the preceding year 2016-17. The highest growth has been from Falta & Cochin SEZ with 112 & 111 % increase respectively.
The software export from the SEZ has also seen a surge of 17% year on year basis between years ending March 2017 and March 2018. India has exported software worth 277,857 crore against 237,771 crore last year.Kandla zone has seen an increase of 75%rise in software exports whereas Indore & Falta zone has been on the top of the chart in value terms and increase of 18%.
The combined export from SEZs in India of merchandise and software has been in tune of 5,51,344 crores as against 4,68,567 crores in last year. Export of non-conventional energy equipment has seen an increase of 113% and likely to be a new source of earning foreign exchange for the country in times to come. Bio-tech is another sector that is emerging out to be a new avenue for the country’s export.
All though top country for the export in value remains United Arab Emirates (49,691 Crore) followed by United State of America (47,746 Crore) but Saudi Arabia has seen a jump of 80% in exports along with United Kingdom, Australia & Singapore. Although China is seen as a threat by many but Indian SEZs have achieved a growth of 84% in exporting to China which is a welcome sign. Mozambique has seen a growth of 23% whereas Italy 25% & Republic of Korea 20%. Countries like Hong Kong, Turkey, Netherland, Israel, Oman & South Africa has seen negative trends but still the overall export has seen a jump of 18% is a welcome sign against lower growth of overall exports from India.
New units who set up their businesses in the SEZs in last two years have achieved total export of 17,355 Crore that indicates enough scope to grow in the special economic zones of India. In the SEZs, the single window clearance, approachable Development Commissioners, approval of new units or changes in the LOP in monthly meetings of unit approval committees, are the pointers towards the ease of doing business as against business in Domestic Tariff Area where a businessperson have to deal with many more authorities & departments.
While giving the details, Dr. Vinay Sharma, officiating Chairman of Export Promotion Council for EOUs & SEZs said, “SEZs are the only place, where the production & services continue without obstruction or hindrance of uninvited, unwanted visitors, which is a norm in the DTA. A safe, secure & peaceful environment flushed with abundant green belts & conducive ambience definitely helps increase productivity & defect free products.”
He further added that for any foreign investor looking for 500 acres or even more to set up their plant, only an SEZ can allot the land quickly; land which is without any encumbrances, litigations, or disruptions. A single window clearance can even help the investor start construction in 4 to 6 weeks which is only possible in the SEZs. The investors from other countries can choose to locate their production facilities for export to other countries,and to sell in domestic markets based upon their choice (South India, North India, West India & East India as per their preference). It is a boon for anyone to get into production mode very quickly. The ease of doing business coupled with the availability of clean & dependable power, water & other resources along with educated & trained man-power is available across the SEZs in India.
Dr. Sharma invited the investors to the India SEZs and assured full support of the Council help them set their business in any of the SEZs.