[photopress:zone_shenzhen_2.jpg,full,alignright]This information is from an Indian perspective and allowance should be made for bias.
China started its liberalization and industrialization with the formation of SEZs in late 70s and early 80s.
China had a master plan and an economic framework on how to build and proceed with SEZs. Massive cities for manufacturing and industrialization were built as part of the SEZ framework.
China rolled out the red carpet for foreign companies to build and operate from these SEZs.
China has only five SEZs, India has approved 200 and still counting.
All the Chinese SEZs are located along the coast line.
Indian SEZs are mostly concentrated near major cities and more than half are being developed by real estate companies attracted by the cheap land prices.
KPMG India, Tax Head, Sudhir Kapadia said, ‘Chinese SEZs are close to ports and trade nations like Hong Kong, Macau and Taiwan. A lot of thought has gone into the location of these SEZs.’
Shenzhen is the largest SEZ in China and is spread over 493 square kilometers.
The largest SEZ in India, Reliance — Navi Mumbai and Maha Mumbai SEZ, is a mere 14,000 hectares.
Exports from Shenzen SEZ reached $100 Billion in 2005. total Chinese exports for 2005 was around $700 Billion which suggests Shenzen contributed 15% of Chinese exports.
Chinese SEZ initiative is government driven.
Indian SEZs are driven by private sector.
[photopress:zone_shezhen_1.jpg,full,alignleft]Mohandas Pai, Executive Director, Infosys Technologies said, ‘We should look at entire districts, with a port and a hinterland for SEZ. We should make large-scale investments in that so there is synergy, and we should ensure that manufacturing has priority, followed by services, but the vision has to be much larger. The way it is today, the vision is too myopic, and too small, and I am afraid we will not get the benefit that China did’.
Source: India Real Estate and SEZ