SEZs and Other Industrial Clusters: Why Incentives Have Not Been Successful in Developing Manufacturing in India?

  • Arpita Mukherjee
  • Parthapratim Pal
  • Saubhik Deb
  • Subhobrota Ray
  • Tanu M. Goyal
Chapter
Part of the India Studies in Business and Economics book series (ISBE)

Abstract

The central and the state governments in India have enacted over 300 policies and schemes, most of them for promoting the growth of the manufacturing sector. The majority of the cluster-based schemes can be dovetailed with incentives under the SEZ policy, implying that an investor can avail of the benefits under more than one scheme and/or policy. However, despite subsidies, grants and other incentives, manufacturing has not grown as expected. This chapter examines some of the cluster-based schemes and how these can be dovetailed with the SEZ policy. It also makes policy recommendations on how to support the growth of the manufacturing sector in India.

Copyright information

© Indian Council for Research on International Economic Relations (ICRIER) 2016

Authors and Affiliations

  • Arpita Mukherjee
    • 1
  • Parthapratim Pal
    • 2
  • Saubhik Deb
    • 3
  • Subhobrota Ray
    • 4
  • Tanu M. Goyal
    • 1
  1. 1.Indian Council for Research on International Economic RelationsNew DelhiIndia
  2. 2.Indian Institute of ManagementKolkataIndia
  3. 3.Economist and Independent ConsultantKolkataIndia
  4. 4.Economist and Independent ConsultantGurgaonIndia

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