New law, old problems

Industrial hubs won't alter SEZ weaknesses

Despite the sustained underwhelming performance of special economic zones (SEZs) over the past half century, the government has chosen to double down on the concept by expanding the ambit of these zones under a new law to be presented in the upcoming monsoon session of Parliament. The Development Enterprise and Services Hub (DESH) Bill, 2022, which replaces the existing SEZ law of 2005, is an ambitious piece of legislation that aims to create mega-manufacturing and investment hubs that will facilitate both export-oriented and domestic investment, playing the dual role of domestic tariff area and SEZ. The development hubs will come