Green shoots: Half of functional SEZs in Gujarat see exports growth

While overall state-wide exports from the Special Economic Zones (SEZs) continue to remain poor, half of the total of 20 operating SEZs experienced a turnaround as their exports rose in September and October.

In September 2020, the combined exports of all functional SEZs in Gujarat decreased by 18% to Rs. 11,348 crore (US$ 1.52 billion) compared to Rs. 13,851 crore (US$ 1.86 billion) in the same month last year, according to the sources citing export data.

However, apart from the Kandla Special Economic Zone (KASEZ), in September and October, 10 other SEZs showed clear signs of recovery. This is a good indicator as both imports and exports have reported growth in these SEZs, stated individuals in the know.

Exports from Surat SEZ, Dahej SEZ, Zydus SEZ and KASEZ increased in September by 89%, 56%, 37% and 16%, respectively. Jubilant SEZ (105% export growth), Sterling SEZs (81%) and TCS SEZ (50%) are the other SEZs that have seen noticeable growth in exports.

Sterling SEZ, Surat SEZ and Zydus SEZ have seen their exports increase by 205%, 124% and 9%, respectively, over the period from 1 to 21 October, to sustain export growth.

The rise in demand for US diamond jewellery has boosted exports of Surat SEZs.

In addition, the construction of new units and the expansion of existing larger players have further led to an increase in SEZ exports, stated a source privy to the details.

The rise in exports of chemicals and drugs has helped Dahej and Zydus SEZs to record export growth.

Production units in SEZs enjoy greater versatility and can turn quickly to goods that are in demand.

For example, to meet the increasing demand for such items in the fight against the Covid-19 pandemic, many plastic units might turn to producing personal protective equipment (PPE). Therefore, even during the difficult times, some of the SEZs managed to keep exporting, added the source.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.