Question

Baba Kalyani committee is related to
1. Small scale industries
2. To evaluate the manufacturing policy
3. To study the SEZ policy
4. To evaluate the industrial policy

Answer 1

Correct Answer - Option 3 : To study the SEZ policy

The correct answer is To study the SEZ policy.

• In June 2018, the Union Commerce Ministry set up a committee headed by Bharat Forge chairman Baba Kalyani to make its special economic zone (SEZ) policy compatible with World Trade Organisation (WTO) rules after the US challenged India’s export subsidy program at the multilateral trade body.
• The Baba Kalyani led committee constituted by the Ministry of Commerce and Industry to study the existing SEZ policy of India submitted its report to Commerce Minister Suresh Prabhu, in New Delhi on November 19, 2018.
• Objectives of the committee :
  • To evaluate the SEZ policy and make it WTO compatible.
  • To suggest measures for maximizing the utilization of vacant land in SEZs.
  • To suggest changes in the SEZ policy based on international experience.
  • To merge the SEZ policy with other Government schemes such as coastal economic zones, Delhi-Mumbai industrial corridor, national industrial manufacturing zones, and food and textiles parks.

•  SEZ :
  • India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla in 1965.
  • With a view to overcoming the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime, and with a view to attracting larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.
  • The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February 2006, providing for drastic simplification of procedures and for single window clearance on matters relating to central as well as state governments.
    • The main objectives of the SEZ Act are :
      • Generation of additional economic activity
      • Promotion of exports of goods and services
      • Promotion of investment from domestic and foreign sources
      • Creation of employment opportunities
      • Development of infrastructure facilities