Govt to revamp SEZ incentives policy, focus on employment over exports

SEZs may be rechristened as 'employment economic conclaves'

The Union commerce and finance ministries are considering revamping Special Economic Zones (SEZs).

The idea is to focus on service sector export and incentivise manufacturing, with stress being shifted from export to employment. A report on this was given early last week by a committee headed by Baba Kalyani, chairman of Bharat Forge. 

Its major recommendations include temoval of sunset clauses for services SEZs (including international financial centres) and for job-based incentives to address issues that might not stand with Wolrd Trade Organization (WTO) rules. 

A government official said: “The suggestions are very constructive and the commerce ministry will immediately begin formal consultations