In India we rank low on the economic fredom enjoyed.A farmer for example cannot freely convert his land to any other non-agricultural use.There are a plethora of restrictions on transfer and ownership.This is why the use of Land Acquisition Act becomes necessary.Because the Govt must step in and taske through force land thatn given chance the farmer probably will willingly sell but for a higher price.Thus you create a situation whereby you distort prices , use coercion and generally create a law and order problem.The solution for this is not to create SEZs but to remove the various restrictive land laws that operate in the country.

As for inter-sectoral equity I think the SEZ Act .creates i) adiscrimination towards palyers in DTA ii) its restrictions on sale in DTA creates the situation whereby serious scope of what I call internal smuggling becomes a probility.Also it subsidies exporters that I thinkis perfectly unnecessary.I think the weakest point of the SEZ Act shall be that in time industries in the DTA shall demand the same concessions as SEZ and polity shall have to concede

As for labour law and SSi reservation if you think they are imoprtant keep them otherwise kill yhem.Do not keep them and encourage people to circumvent them.The solution is rationalization and not exemption in some selected areas.

Finally the SEs cannot be a stand alone venture without any impact on surroundings.Pollution in a SEZ for example shall lead to impact in the surrounding farmland.This burden shall be disproportionately higher on the rest of the country as the SEZs shall enjoy a variety of tax exemptions.This essentially creates a free rider prolem.

I shall like to conclude by saying that the Indian growth model so far has been radically diffrent from China.We have grown on innovation ( IT), sophisticated legal and financial norms ( Stock Market our legal system) and strong domestic demand.There is no reason for us to try to emulate the Chinese model of cheap labour , exploitation swaet shps ad a mad rush for exports disregarding rules of trade like IP protection.

1. we think it will results in huge revenue losses, say INCOME TAX,etc as it has a provision for 10 years 100% exemption from tax in first 15 yrs of oprt.

2.a setback to farmmes or agricultre ind

3. crowded places

4.economy imblances ( rich will get more richer and poor on the recieving end)

now these all resons r there which makes pepole crib about sez, say kind of reactions left is showing i can predict that this current goverment of India is going to lose coming elections and tat will be soley for this issue…..newyz these resons r good enough to shake any pillars of an economy. but why we dont see where r we at present and without taking these steps what ll be our position in the world economy. say at present INDIA has huge amount of tax which is some whr around 40,0000 cr (undisputed only) is to be collected i can bet cant be collected in next 10 yrs,courtesy – GOI as it has a form called SARAL which is too kathin in practice for a layman. say if we r use to this status that tax r not recovered or we have great tool which we allways use in bureocratic manner tat is “corruption” whr 70% of corporate revenues to GOI goes for a ride. so why we r geting worried for future revenues ????

say every year govt losses 4000 cr rs only on wear and tears for the course of exports thanx to well maintened infastucture….. if sez can help in making a better India atleast look wise ( sorry for getting too sarcastic)had no choice to answer those who believes India has touched 8 % growth and should sit on that only.

In fact i pesonally feel that govt shouls hav BOT model here tat is more suitable as- suppose FOR EX- rel has invested 100 cr for a sez then they thr should a fixed amount near 100 cr which it can enjoy as 100% exempted tax and after tat amount tat sez should be tranfer to GOI and thr after rel should pay tax to GOI.

so be open to ideas no matter it is a copy or original….cheers

feedback plzzzzz= kamal.sahdev@iilm.in

http://apunkadesh.blogspot.com/

‘Our agricultural sector is inherently inefficient because of small land holdings and too many people dependent on agriculture.’

this report – http://www.fao.org/docrep/005/ac484e/ac484e0a.htm – says, contrary to the widely held belief that small farms mean inefficiencies, the small, marginal and sub-marginal farmers in india are more efficient and productive than large, medium farmers.

the only problem being, because of their small size (

Karthik, not to nitpick, but isn’t supply-and-demand still the operative rule of any economy and the fairest arbiter of price? Or should there be another entity, such as the government, that should decide what the “fair” price is for agriculture and whether or not industry is getting a “decent” price?

If you are an economist, as most of the bloggers here are, then feel free to educate me on this fine point. I am not an economist.