Transcript Special Economic Zones: An Avenue for sustainable Rural

Special Economic Zones: An Avenue
for sustainable Rural Development
17th March, 2008
By:
Dr. Arun Bhadauria
Rural India: Conditions
• Largest sector (Agriculture & Allied) in
Indian Economy.
• Employing about 60 percent of the
population.
• Contributing only about 25 percent to
GDP.
• Providing forward & backward linkage to
Industry & Service Sector.
Rural India: Problems
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Low Productivity.
Inadequate infrastructure.
Employment in disguise.
Low percolation of developmental advantages to
the rural area.
Dependence on nature.
Low shift on non-farm activities.
Largely engaged in subsistence Agriculture.
Govt protection making rural economy weak.
Lack of organization in execution of the
developmental efforts.
Rural India: Opportunities
• Huge potential for diversified practices in
Agriculture & Allied activities.
• Peri-urban Culture is the linkage to urban & rural
area.
• Lot of Man power.
• Contributing in high amount to International
Trade and has high potential for International
Trade too.
• Large number of untapped & tapped resources.
• Able to attract FDI.
• Provide largest market.
• Main site for environmental conservation.
• Provide support for all sectors.
• Bread earner for whole economy.
Rural India: Threats
• May succumb to the pressure of
capitalistic economy.
• Victim of vote politics.
• Unawareness & inaccessibility.
• Low self-reliance.
• Poor Connectivity led to deprivation of
many facilities and information.
• Indebtedness cause distress.
Rural India: Future Prospects
• Emerge as largest contributor to GDP.
• Become the main site of
environmentally
sustainable development.
• Become the main reservoir of human resource.
• Emerge as the largest contributor to other
sectors in the form of food processing,
agriculture technology, biotechnology etc.
• Provide the base for development of whole
economy.
Rural Development: Aim
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To develop Rural India.
To eradicate poverty.
To improve quality of life.
To raise the production & productivity.
To diversify the agriculture.
To improve connectivity.
To provide adequate infrastructure.
To create human resource.
Rural Development: Lessons Learnt
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Poverty is still biggest challenge.
Unemployment persists.
Poor quality of life.
Dependence led to distress creating need
of loan waiver.
• Plethora of ineffective, unsuccessful &
confusing policies.
• Idea of rural development is turning into
corporate development.
Special Economic Zones
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Vehicles of holistic economic development
Remove the deficiencies in infrastructure
Generate additional economic activity
Promote exports of goods and services
Promote investment from domestic and
foreign sources
• Create employment opportunities
• Develop infrastructure facilities
• Establish labour intensive manufacturing
and services.
Special Economic Zones: Opportunities
• Establishment of labour intensive
manufacturing & services provide
opportunity to rural masses to shift from
agriculture to manufacturing & service
sector reducing burden on the agriculture.
• Employment opportunity improve the
morale & economic conditions of the poor
landless farmer/labour.
Special Economic Zones: Opportunities
• Waste Land Utilization generate income to
the govt leading more investment in the
area.
• International Market come at doorsteps.
• Infrastructural support provide amicable
solution to the problems of sustainable
development.
• Generation of economic activity reduce the
possibility of family holding & employment
in disguise.
• Rural India earn more through Rural
Tourism.
• Increase awareness, competitiveness &
Adaptability.
Special Economic Zones: Fear
• Small & Marginal Farmers may turn landless.
• Source of livelihood may be snatched by
corporate & capitalist.
• Fertile land is taken by SEZ reduce the
cultivable land.
• Inadequate enforcement of scheme of
resettlement cause social destitution.
• No confirm mechanism of establishing SEZs led
to fear psychosis among villagers.
• Immigration may alter the natural resource
capital and spoil the cultural identity.
Special Economic Zones: Remedies
• Establish SEZs on waste land.
• Establish SEZ as per the nature of
resources in the area.
• SEZs will provide avenues for resource
mobilization.
• Establish SEZs for development not for
retrenchment.
• Establish in tune with the aspects of Rural
Development.
Special Economic Zones: Remedies
• Land acquisition and resettlement will be
properly addressed to the grievances of
the farmers.
• Agribusiness & processing activities must
be promoted through SEZs.
• Proper attention paid for sustainable
environment.
• Make it an opportunity to develop Rural
Tourism.
• Ensure fuller participation of the persons
from the area.
Vikas aisa ho jo afat se bachaye
Vikas aisa ho jo afat na ban jaye
THANK YOU