Proposed DESH law aims to grant SEZs greater flexibility, but will it work?

Some experts see significant positives, other believe problems associated with older policy will persist

The government is attempting to overhaul the special economic zone (SEZ) policy by expanding the ambit of these exclusive zones to make them WTO-compliant and perform roles that go beyond export-orientation.

The new draft Development of Enterprise and Service Hubs (DESH) Bill seeks to set up ‘development hubs’ for promoting economic activity, generating employment, integrating with global supply and value chains and maintaining manufacturing and export competitiveness, developing infrastructure facilities, promoting investments, including in research and development (R&D).

The Bill, expected to be tabled in Parliament in the upcoming monsoon session, does not ignore exports. Such hubs will also