How can India plan better for Special Economic Zones (SEZ) to revive the economy? In Bloomberg Opinion, Reuben Abraham looks at how China developed its SEZs and discusses the principles that India must adopt to be successful too.
"If India only reforms when under pressure, then now should be a moment for big changes: Gross domestic product contracted nearly 24% in the second quarter, more than any other large economy; tens of millions have lost jobs in the formal and informal sectors; and the country is adding over 85,000 confirmed coronavirus cases each day. There’s an obvious place for the government to start, too: fixing India’s failed special economic zones."
"Above all, these zones must provide the kind of governance and clarity that’s in short supply across the rest of India. Local administrators must be empowered to make radical changes to labor laws, for instance. Fast-track courts to resolve disputes are critical, as is eliminating most restrictions on foreign investment. The point is not just to make production cheaper, but also to create a fundamentally different atmosphere for doing business than companies would find elsewhere on the subcontinent."
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