Volume: 3 Issue: 08 August 2016 www.thedollarbusiness.com facebook.com/tdbIndia twitter.com/TheDollarBiz in.linkedin.com/in/thedollarbusiness/ President (VMPL) & Editor-in-Chief
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© Copyright 2016 No part of this magazine may be reproduced in whole or in part without an expressed permission of the publisher. The information on this magazine is for information purpose only. Manish K. Pandey, Editor, The Dollar Business, is responsible for the selection of news and content under PRB Act. Vimbri Media Pvt. Ltd. assumes no liability or responsibility for any inaccurate, delayed or incomplete information, or for any actions taken in reliance thereon. The information contained about each individual, event or organisation has been provided by such individual, event organisers or organisation without verification by us. All disputes are subject to exclusive jurisdiction of competent courts and forums in Hyderabad, Telangana. Printed and published by Avnish Goyal for Vimbri Media Pvt. Ltd. Published at 5-2-198/4, Distillery Road, Ranigunj, Secunderabad - 500 003, Telangana. Printed at: Kala Jyothi Process Pvt. Ltd., 1-1-60/5, RTC Cross Roads, Musheerabad, Hyderabad - 500 020, Telangana. FOR EDITORIAL/CONTENT Email: editorial@thedollarbusiness.com FOR ADVERTISEMENT Email: ads@thedollarbusiness.com FOR SUBSCRIPTION Email: subscription@thedollarbusiness.com . +91-40-67609999 For queries / comments you can send us an SMS at +91-888-633-1947
8 THE DOLLAR BUSINESS II AUGUST 2016
Special Economic Zones (SEZs) came into existence in 2005. The idea was to enhance exports and earn ‘precious’ foreign exchange. And they were doing it all until sometime back. So, what suddenly happened that the name SEZ is not sufficient anymore to realise the country’s export ambitions? Do we, as a country, need go back to the drawing board and re-design the entire SEZ policy? The Dollar Business investigates the reasons for the downward spiral and looks for ways and means to revive these special ‘export’ zones.
H.E. GEORGES DE LA ROCHE
CRESENCIANO G. MARAMOT
CHIEF MINISTER OF CHHATTISGARH Talks about factors that make Chhattisgarh an ideal investment destination and what the state is doing to to create an enabling environment for businesses
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INBOX
LETTERS TO THE EDITOR
Readers’ feedback, criticism, and appreciation that hit our mailboxes in July 2016
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MONOLOGUE
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PEOPLE SPEAK
From Theresa May on Brexit to Narendra Modi on India’s business interest in South Africa and more...
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GUJARAT PIPAVAV PORT This port has shown promise after APM Terminals took over. And with expansion plans in place, there seems an even better future
SPOTLIGHT
GUATEMALA The country is attracting FDI and showing promise in global trade
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reveals the council’s future plans
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POLICY FOCUS
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EXCLUSIVE COLUMN
SECRET INGREDIENT BABY GARMENTS
INTEX TECHNOLOGIES
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POLICY MONITOR
EPCES Executive Director D. K. Sareen
IMPACT OF BREXIT
NEXGEN NEWAMAKER
HI-TECHROBOTIC SYSTEMZ
Anuj Kapuria, Founder-CEO, on the future of hi-tech manufacturing
IMPORT’ONOMICS
ETHYLENE GLYCOL Low production and high demand means importing it is the only option
STATE TRADING ENTERPRISES Post-liberalisation are STEs relevant in the Indian context?
Ajay Sahai, DG & CEO of FIEO, on the impact of Brexit on Indian trade
GLOBAL CORPORATION CMD Narendra Bansal shares his plans for growth & diversification
INDIA TRADE
India’s improved LPI ranking, and its triumph over China in pharma exports, the Mozambique pigeon peas deal & much more...
DOCKYARD
There are opportunities galore for Indian kidswear exporters
GLOBAL TRADE
The US-China trade war, World Bank on Malaysia’s SME growth, Namibia’s beef exports to US, IMF’s grant to Iraq & much more...
MD, SGS INDIA & SRI LANKA Reveals strategies that have helped his company stay ahead of competition, across the globe
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DR. RAMAN SINGH
INDIA’S SEZs: TIME TO STOP THEIR COLLAPSE
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AMBASSADOR OF GUATEMALA TO INDIA On the need to strengthen bilateral trade ties
22 COVER STORY
EDITORIAL CONSULTING BOARD Founder & Editor : Anil Goyal Publisher : Avnish Goyal Chief Consulting Editor : Dr. A. K. Sengupta Editorial Advisors : Dr. N.K. Goyal (CMAI), Atul Kumar Saxena (IIA)
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TDB FORUM
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DATEBOOK
Questions about foreign trade that hit our mail box in July 2016
Some must visit trade shows AUGUST 2016 II THE DOLLAR BUSINESS 9
COVER STORY
SPECIAL ECONOMIC ZONES (SEZs)
WHAT AILS INDIA'S MANUFACTURING HOT SPOTS?
Special Economic Zones (SEZs) came into being a decade back with extravagant praise. The 'big idea' was to enhance exports and earn precious foreign exchange. Considering that an SEZ was completely exempted from income tax, these zones were successful in achieving their mandate, even clocking a stellar exports growth of 121% in FY2011. But that's where the good news ends. Today, we are faced with a pertinent question. Is the modern day SEZ policy encouraging enough to help India realise its export ambitions? Or is there a need for an overhaul in the rules that guide, control and dictate the functioning of SEZs? The Dollar Business investigates reasons for the unhappy state of affairs of these special 'export' zones and if revival is a possibility. BY SISIR PRADHAN
Aerial view of the amphitheater at eVolve – The GenNxt IT Park in IT SEZ, Mahindra World City, Jaipur. Developers have build infrastructure in huge tracts of land but in the present condition are finding it difficult to attract exporting units. 22 THE DOLLAR BUSINESS II AUGUST 2016
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