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Special Economic Zones: An Avenuefor sustainable Rural Development

By:17 th March, 2008 Dr. Arun Bhadauria

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Rural India: Conditions

Largest sector (Agriculture & Allied) inIndian Economy.

Employing about 60 percent of thepopulation. Contributing only about 25 percent toGDP.

Providing forward & backward linkage toIndustry & Service Sector.

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Rural India: Problems Low Productivity. Inadequate infrastructure. Employment in disguise.

Low percolation of developmental advantages tothe rural area. Dependence on nature. Low shift on non-farm activities.

Largely engaged in subsistence Agriculture. Govt protection making rural economy weak. Lack of organization in execution of thedevelopmental efforts.

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Rural India: Opportunities Huge potential for diversified practices in Agriculture & Allied activities. Peri-urban Culture is the linkage to urban & ruralarea.

Lot of Man power. Contributing in high amount to InternationalTrade and has high potential for InternationalTrade too.

Large number of untapped & tapped resources.

Able to attract FDI. Provide largest market. Main site for environmental conservation. Provide support for all sectors.

Bread earner for whole economy.

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Rural India: Threats

May succumb to the pressure of capitalistic economy.

Victim of vote politics. Unawareness & inaccessibility. Low self-reliance.

Poor Connectivity led to deprivation of many facilities and information.

Indebtedness cause distress.

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Rural India: Future Prospects

Emerge as largest contributor to GDP. Become the main site of environmentallysustainable development.

Become the main reservoir of human resource. Emerge as the largest contributor to other sectors in the form of food processing,

agriculture technology, biotechnology etc. Provide the base for development of wholeeconomy.

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Rural Development: Aim

To develop Rural India. To eradicate poverty.

To improve quality of life. To raise the production & productivity. To diversify the agriculture. To improve connectivity. To provide adequate infrastructure. To create human resource.

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Rural Development: Lessons Learnt

Poverty is still biggest challenge. Unemployment persists.

Poor quality of life. Dependence led to distress creating needof loan waiver.

Plethora of ineffective, unsuccessful &confusing policies.

Idea of rural development is turning intocorporate development.

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Special Economic Zones

Vehicles of holistic economic development Remove the deficiencies in infrastructure Generate additional economic activity Promote exports of goods and services Promote investment from domestic andforeign sources

Create employment opportunities Develop infrastructure facilities Establish labour intensive manufacturingand services.

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Special Economic Zones: Opportunities

Establishment of labour intensivemanufacturing & services provideopportunity to rural masses to shift fromagriculture to manufacturing & servicesector reducing burden on the agriculture.

Employment opportunity improve themorale & economic conditions of the poor landless farmer/labour.

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Special Economic Zones: Opportunities Waste Land Utilization generate income to

the govt leading more investment in thearea. International Market come at doorsteps. Infrastructural support provide amicable

solution to the problems of sustainabledevelopment. Generation of economic activity reduce thepossibility of family holding & employment

in disguise. Rural India earn more through RuralTourism.

Increase awareness, competitiveness &

Adaptability.

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Special Economic Zones: Fear Small & Marginal Farmers may turn landless. Source of livelihood may be snatched bycorporate & capitalist.

Fertile land is taken by SEZ reduce thecultivable land. Inadequate enforcement of scheme of resettlement cause social destitution.

No confirm mechanism of establishing SEZs ledto fear psychosis among villagers.

Immigration may alter the natural resourcecapital and spoil the cultural identity.

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Special Economic Zones: Remedies

Establish SEZs on waste land. Establish SEZ as per the nature of resources in the area.

SEZs will provide avenues for resourcemobilization.

Establish SEZs for development not for retrenchment.

Establish in tune with the aspects of RuralDevelopment.

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Special Economic Zones: Remedies

Land acquisition and resettlement will beproperly addressed to the grievances of the farmers.

Agribusiness & processing activities mustbe promoted through SEZs.

Proper attention paid for sustainableenvironment.

Make it an opportunity to develop RuralTourism.

Ensure fuller participation of the personsfrom the area.

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VIKAS AISA HO JO AFAT SE BACHAYE VIKAS AISA HO JO AFAT NA BAN JAYE

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THANK YOU