QUESTION 9
GS3
12.5 marks
There is a clear acknowledgement that Special Economic Zones (SEZs) are a tool of industrial development, manufacturing and exports. Recognising this potential, the whole instrumentality of SEZs requires augmentation. Discuss issues plaguing their success with respect to taxation, governing laws and administration.
WRITE IN
9 min
200 words
What the examiner wants
Discuss the taxation, legal and administrative issues that have limited SEZs' success.
DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.
Demand-wise check
- 1Taxation: MAT and DDT on SEZ units and developers (2011-12), sunset of Section 10AA (units after March 2020), loss of edge after GST≈35 words
- 2Governing laws: SEZ Act 2005 overlaps with state laws, land acquisition disputes, WTO concerns on export subsidies≈35 words
- 3Administration: multiple approvals, slow clearances, idle land, uneven spread to a few states≈35 words
- 4Reforms: Baba Kalyani Committee, proposed DESH Bill≈35 words
Open in about 30 words and close in about 30.
Answer plan
SEZ purposeTax issuesLegal issuesAdministrative issuesReforms
Where marks usually go
- Not structuring by the three heads the question names
- Ignoring WTO compatibility
Draw this
- Three-column table: taxation, law, administration - problem and fix
Value addition
- CommitteeBaba Kalyani Committee (2018) suggested turning SEZs into Employment and Economic Enclaves (3Es).Ministry of Commerce, 2018
- ReportCAG's 2014 audit found much land acquired for SEZs lying unused or diverted.CAG, 2014
Mapped topper copies
Reviewed public-source references related to this PYQ. Same-syllabus references are labelled separately.
- Mayank Purohit · AIR 33 · Page 3 ↗Same syllabus reference
- Shakti Dubey · AIR 1 · Page 23 ↗Same syllabus reference
- Aniket Ranjan · AIR 48 · Page 26 ↗Same syllabus reference
- Mayank Purohit · AIR 33 · Page 13 ↗Same syllabus reference
Links open original public sources. MainsBuddy does not host these answer sheets.
Next: plan for one minute, write it in 9 minutes, then get it checked.