T.N. GIM 2024 | At 54, State has highest concentration of operational SEZs, accounting for one-third of exports

Alex Paul Menon, Development Commissioner, MEPZ, SEZ, was speaking at a session on ‘Special Economic Zones as Engines of Economic Transformation’, on the second day of the Global Investors Meet 2024 in Chennai

The session ‘Special Economic Zones as Engines of Economic Transformation’ took place on the second day of the Global Investors Meet 2024, in Chennai, on January 8 | Photo Credit: Ravindran R

Tamil Nadu has the highest concentration of Special Economic Zones (SEZs) in the country, with 54 of them in operation, accounting for one-third of the State’s exports, Alex Paul Menon, Development Commissioner, MEPZ (Madras Export Processing Zone) SEZ, said at the Global Investors Meet 2024, in Chennai, on Monday, January, 8, 2024.

Noting that the SEZ started as a policy in 2002 and became an Act in 2005, Mr. Menon, at a session on ‘Special Economic Zones as Engines of Economic Transformation’, said, “We are going steady for the last 18 years.” He pointed out that the time taken to give clearances at MEPZ has been 11 average working days in the past one year. If designed and implemented carefully, SEZs can attract global value chains in the region, he said.

Moderating the session, Sunil Rallan, managing director, J Matadee Free Trade Zone Pvt Ltd, said Tamil Nadu offers political and social stability. Global value chains, with an eye on exports, are looking to set their operations in Tamil Nadu, he added.

Anup Wadhawan, former Union Commerce Secretary said India was the best alternative to a realignment of global supply chains. Tamil Nadu is one of the biggest recipients of foreign direct investments and investments in the SEZ platforms. In his view, he said, States including Tamil Nadu could replicate the model of SEZs and create a separate platform that focused on on removing hurdles and making businesses competitive. “The focus of the Central government along with the states have been on digitising approvals as well as providing plug and play models for manufacturing,” Mr Wadhawan said.

Arul Sambandam, managing director, Synergy India Ventures was of the view that Tamil Nadu scored in aspects like ease of doing business and ranked number three in the Index, and had advantages such as the availability of cheaper and skilled workforces.

Another panelist, Aradhana Aggarwal, professor, Copenhagen School of Business, said governance was better at SEZs, and there was less corruption. She also said the role of services in manufacturing was increasing, and India could take advantage of this.

January 8, 2024, is the concluding day of Tamil Nadu’s Global Investors Meet 2024.