Economic zone exports to grow over four-fold by 2008-09

New Delhi, Sep 4: Controversies apart, exports from special economic zones (SEZs) have registered a growth of 192 percent between 2005-06 and 2007-08, and are likely to tot a phenomenal 451 percent rise by 2008-09, according to assessment by an industry lobby released Thursday.

The study by the Associated Chambers of Commerce and Industry of India (Assocham) cited official data to say that after the SEZ Act came into being in 2005-06, exports from these zones rose from Rs.228.4 billion to Rs.666.38 billion in 2007-08, marking a 192 percent growth.

"In 2007-08, the total exports of India as per official figures between April-December are estimated at Rs.478,522.52 crore (Rs.4,785 billion), thus their contributions to the total domestic exports have gone up from 5.004 percent in 2005-06 to 13.93 percent in first nine months of 2007-08," the report said.

"By 2011-12, we expect SEZ exports going up to over Rs.515,891.2 crore (about Rs.5,159 billion or a little over $125 billion) as by then realistically, all the controversies relating to SEZs would be resolved," said Assocham president Sajjan Jindal while releasing the chamber assessment.

According to Assocham, by 2011-12, SEZs are expected to create direct employment opportunity for 10 million skilled workforce.

The official estimate shows that by March 2008, SEZs have created direct employment opportunities for one million people, which by December 2009, would go up to more than two million people.

As of date, 90 SEZs are operational while 253 SEZs have been notified after the SEZ Act was passed.

In the 90 operational zones, 353 units have come up.

The chamber also said it was optimistic that by end of the 11th Five Year Plan period, the SEZs would attract investments of Rs.10,00,000 crore (Rs.10,000 billion or about $250 billion).

As per official estimates, by December 2009, SEZs would receive investments of nearly Rs.300,000 crore (Rs.3,000 billion or $75 billion).

--IANS