Trade Performance of SEZs in India

The performance of seven conventional Indian special economic zones (SEZs) at the disaggregate level is analysed within the framework of the zone-trade performance index, for the period between 1986–87 and 2007–08. The analysis reveals variations in performance across zones as well as within the zones over the reference period. The variations in performance are found to be statistically significant as well. The zones specifically located in economically developed states performed better than the zones in other states. This reveals the pressing problem of regional disparities finding reflection in the SEZs structure and calls for policy intervention. Further, zones are found to be equally sensitive to external economic fluctuations. On the positive side, the introduction of the SEZs policy in 2000–01 has had a favourable impact on the performance of these enclaves.