China had a delayed start on SEZ, but remains to stay on top
China offered the West cheap labour, wooing them with attractive packages and tax benefits
By : DC Correspondent
Update: 2015-08-19 06:41 GMT
Chennai: When erstwhile USSR was disintegrating in the post-cold war era, Communist party ruled China, was the most populated country in the world. The country was making rapid strides to face the future.
As the West was looking for cheap manpower/ labour, China opened up and investments poured in from various countries. Around the same time, India, which had first introduced the SEZ concept in 1965 was losing out to its neighbour, which set up its first SEZ 13 years later.
However, China, which had foresight backed by effective laws, emerged as a leader even before World Trade Organisation commenced its stiff regime. The one party ruled country, which has vast landscape dotted with grassland, desert, mountain ranges, lakes, rivers and long coastline, ensured setting up of eight-lane highway to attract firms. Once there was free flow of goods with road connectivity, placing all other infrastructure became easier and helped firms set up their units.
China offered the West cheap labour, wooing them with attractive packages and tax benefits. Besides, China, other South East Asian countries including Thailand, Indonesia, Vietnam, Malaysia also reaped the benefits from the scenario.
Though India is a pioneer in introduction of SEZ in the world, it lagged behind other countries in attracting foreign investments. This was largely due to rigid policy frame work. By the time India’s liberalisation policy took effect, China and South East Asian countries had made their mark as countries offering one stop clearance for SEZ units. They were supported by committed governments and labour force.