SEZs in Gujarat, which contribute to 1/3rd of total India export, likely to break the negative growth trend this year

Ahmedabad: The Special Economic Zones (SEZ’s) of Gujarat, which contribute to around one third of the total Indian export, are likely to break the trend of constant decline in export figures since FY 2012-13 caused mainly by global economic slowdown, Zonal Development Commissioner for Gujarat SEZs and export oriented units (EOUs) and Chairman of Kandla SEZ or KASEZ Authority, Upendra Vasishth today said.

Addressing a press conference here he said that the trend of decline in exports figures that started after 2012-13 (Rs 2.27 lakh crores) is likely to be halted for the first time, though may be with a very small margin, in 2016-17.

In 2013-14 it came down to Rs 2.24 lakh crores, and the next year ie in 2014-15 to Rs 1.80 lakh crores and last fiscal ie 2015-16 it came further down to 1.36 lakh crores. The sector has since 40% downfall since 2012-13.

‘The reason was economic slowdown, which badly hit many exporting sectors including the apparel industry but now it seems that this decline has bottomed out and from this year ie 2016-17, it is going to come out of the negative pattern, though with a very nominal margin. In the current fiscal year up to February 2017, the figure of exports through the existing 19 Gujarat SEZ’s (one still non-functional), was Rs 1.25 lakh crores, with a very minor difference of -0.45% from the figures of 1.26 lakh crore for the corresponding period of the last fiscal. In March there are sings of improvement which gives us hope that the overall figure this fiscal will for the first time since 2012-13 will go up,’ he said.

To a query he said that the largest chunk of export from Gujarat was that of Reliance SEZ, a major exporter of oil. Last year out of the total around 1.36 lakh crore 1.07 lakh crore of export was through Reliance SEZ. This year also its contribution is over 95 thousand crores so far. ‘However, other SEZ’s like the one of Zydus and IT based ones of TCS and L&T are also doing very well. GIFT SEZ and Dahej SEZ where the OPAL plant was recently inaugurated by Prime Minister Modi, is also likely to give a big boost to the export segment. Though Gujarat is not so much of an IT hub yet the IT based SEZ’s of TCS and L&T are doing fairly well. TCS SEZ has crossed 1000 crore mark,’ he said.

He said that mainly owing to the fall in the crude oil prices Reliance SEZ has seen a decline of around 5.40 % in exports though the volume has not gone down. Similarly owing to land related legal issues the Adani SEZ with a figure of 1534 crore till February this year has also shown a nominal growth of 3.46% over the same period of last year.

Mr Vasishth said that by 2020, four to five more SEZ’s are likey to come up in the state. ‘The growth in export is likely to pick up in a better manner in next three years,’ he said adding that so far the SEZ’s in Gujarat have given direct employment to 75000 people.

DeshGujarat