Special Economic Zones and its role in Development of India

Special Economic Zones is the approach adopted by Governement to provide the needed thrust for overall Development of Nation. The ultimate objective of setting up Special Economic Zones is to make our country self-sustained in all areas such as Infrastructure, Science and Technology, Manufacturing, Communication, Education. Stimulating the process of Industrialization through SEZ will help India emerge as a Developed Nation by 2020.

Industrialization should create employment opportunities to counter-act increasing unemployment problem, which happens to be a major threat for emergence of India as a developed Nation by 2020. Our Economy largely depends on Industrialization process for it to sustain increasing population.

Now moving to other aspect of SEZ where it is considered to be threat to Agricultural Population and an important cause of Environmental Pollution. It is at this point that Advancement in Science and Technology comes into picture. Government should take steps to promote Research&Development Activities in area of prevention of Environmental Hazards due to Industrialization and in developing Techniques that yield high outputs for a given fixed part of Agricultural Land. Industrialization is a must needed thrust for nation like India which is on its development path and without which the process to attain the status of Developed Nation by India would lose its dynamism. Government should take a balanced approach as “Agricultural Sector, Environmental Pollution” are equally important as that of Industrialization.

Source: The Hindu, December 21, 2008

China to Dominate Outsourcing Sector

Global Recession is playing a major role in the evolution of Outsouring sector. According to research conducted by Professor Arie Y.Lewing from Centre for International Business Education and Research (CIBER), Offshoring activity is witnessing a prominent change. Companies in order to cut down their cost at the time of Worst Economic crisis will ultimately go the way of Outsourcing. Though companies perceive it as a form of cost-cutting tool they perceive it as important Business strategy.

With Barack Obama to be soon taking charge of Presidentship, this sector may undergo lot many changes in the wake of US Subprime Mortgage crisis.

China will be a dominant factor in Outsourcing business due to their edge in Product Development area which is the area where 50% offshoring is carried in 2008. Companies perceive China as best Offshoring place because of their Industrial Advancement. Though China is not perceived to dominate because of lack of English speaking skills in theri working population, the above reason overthrows this factor to favour China.

According to survey, clients in US are seeking more cost-reduction which affects Indian Outsourcing Industries which has relatively less share in “Product Development” area compared to China. Due to some clients seeking Financial support, Indian Outsourcing companies have more financial constraints at this juncture.