The recent SEZ mania makes me wonder that if Manufacturing Sector can be given such privileges, then why not the Sector which employs more than half of the country?
These facilities can be given to boost Industrial Development but why not Agricultural Sector be given some special privileges to boost agricultural development.
The imbalance in shift of labor force from primary sector to Tertiary Sector has lead to Growth but I believe we won’t be able to sustain it because the Primary Sector didn’t develop properly but we still shifted to the Tertiary sector. This might hamper the development, especially the Inclusive Development.
Industrial Revolution started in England, the event that led to this Revolution was the boost in cotton production. This boost was due to the change in system of production.
The wealthy people bought huge tract of lands, invested in the new techniques of Agriculture; employed the farmer and what followed is History.
In India’s context, there is abundance of the unskilled labor that according to many is a liability to the country. But this ‘Liability ’can prove to be an asset but for that to happen, Government has to change its Agricultural Policy and set up what I would call Special Agri-Zones. Large corporate can then step in the Agri-business and invest.
The money ‘Invested’ will multiply in form of high profits. The profits procured can be used to build Community assets like schools, internet-cafe, hospitals, roads etc
All this is nothing but ‘Infrastructure’. Then rural India will not be ‘rural’ anymore.
Poverty is one of the issues which India has not been able to tackle since we earned sovereignty. We will no longer require any PAP’s to tackle this problem.
Food security is eating away the Forex Reserves, but with the boost in production the problem will be solved and can further lead to improvement in the BOP.
If we compare the negatives of the two, SEZ’s have environmental concern because of deforestation, pollution. But SEZ’s can not pollute environment, SEZ’s employs white collar workers led labor, whereas the SAZ’s will employ the farmers who are in immediate need of money.
Domestic consideration for agriculture business in India:
A prospective Corporate Giant interested in starting an agriculture business in India has competitive advantage of local demand of agricultural produce. Agriculture today accounts for about 33% of India's GDP and employs 62% of the population. The improved farming techniques and irrigation facilities enhance productivity.
Intrinsic advantages:
It is one of the countries best blessed with a natural bounty in terms of flora and fauna.
India is the largest producer in the areas of fruits and vegetables, tea and jute and a close second or third in other products.
It has a large coastline with a thriving fishing trade.
It has varied agro-climatic zones.
It is a good area for foreign direct investments.
It has skilled and cheap labor.
Moreover, the corporate giants can afford to import latest technology for agriculture. This will lead to high efficiency and productivity which ultimately will lead to high profits and in the process, development of the Farmers also Privileges like Duty free imports, Income-tax, service-tax exemption, External commercial barrowing without restrictions will generate the interest of these companies in SAZs.