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 SEZs are important in todays 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 SEZs 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 SEZs
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