ASSIGNMNENT QUESTIONS

1 Should the Indian government change the law on eminent domain, so that they can acquire land for Special Economic Zones?

Yes Indian government should change the law on eminent domain , so that they can acquire land for Special Economic Zones. The various advantages of the SEZ's and land acquisition in India are that it has helped in bringing in huge amounts of foreign currency into the country, increased the number of jobs for the people and to bring technological advances to Indian industry, and make it a cost-effective producer.

2 Is setting up Special Economic Zones the right development strategy for India?

Ans: Yes. Definitely SEZ’s are important in today’s context for the third world

countries which have been in the race for rapid economic growth. There are

many positives which emerge out of establishing an SEZ. Let us have a look on

these factors.

For undertaking any kind of massive development program the government

requires huge amount of funds. So it looks out for potential partners to help

the government carry out the program. Now say for setting up an SEZ, the

government may tie up with a private partner whose willing to invest in that

area, thus a win-win situation for both. As in the government gets the capital

needed to establish the required infrastructure and also the expertise. The

private player on the other hand gets the right to market and use the SEZ’s

with relaxed tax laws, thereby increasing its revenue generating capacity and

also carrying out the eco`nomic growth of the company in a more efficient way

with the better tax policies. Actually SEZ’s with relaxed import tariffs help the

Import dependent and export driven industries to flourish by helping them

develop manufactured goods at competitive prices.

3 What could Tata Motors have done in their Singur project to mitigate the protests from farmers?To mitigate the protests from farmers in Singur project the Tata Motors could have taken the following measures;

Acquisition of fertile agricultural land for private enterprise was one of the main problems that make way for the protest get wide support also people who are depending on farming as livelihood will be getting unemployed. So, a proper awareness to people in singur about the future advantages includes employment, huge money flow in that place, development of singur as a whole etc would have taken to mitigate the protest

4 Under what circumstances and to what extent should the government intervene in market transactions?In certain situat