Govt should encourage SEZs, says Assocham

Govt should encourage SEZs, says Assocham

 In order to meet Global competitiveness and spur export growth along with meeting challenges in India’s fast growing economy, the government must encourage Special Economic Zones (SEZs) for certain sectors, Industry body Assocham said.

SEZs have to be developed to promote the rapid and orderly growth and development of industries, which will not only provide greater opportunities for employment but also motivation to produce quality goods at low cost with the ability to meet international trade competition.

The Associated Chambers of Commerce and Industry of India (Assocham), Secretary General, D S Rawat, said, “To spur export growth, all EPZ (Export Processing Zones) and SSI units should be exempted from the provisions of the Industrial Disputes Act. 

The EPZ may, however, be subject to the basic labour law like Payment of Wages protection of employees working there. Self enforcement system for EPZ establishments should be developed and local industrial associations should be taken into confidence for proper enforcement, Rawat said.

On Prohibition of Employment of Contract Labour, he said, “The current provisions of the Contract Labour Act do not recognise the role of contractors. There is over-regulation and under supervision with less than one per cent of the temporary workforce in the organised sector.”

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