SEZ is great idea
by Shantanu Bapat on Jul 25, 2007 08:48 AM
The main reason for SEZ is the antiquated labor laws. In India, people think that the job they do is supposed to be secure and that the corporation is run for workers benefit and not for profit. Well because of this mentality investors are still reluctant to start any venture that requires labor. Ironically, this labor protection resulted in joblessness. For Nehruvian it made more sense to be hungry and jobless than to be "exploited".China recognized this 20 years back. They created SEZs where labor laws would not apply and manufacturers came and now China is way ahead and leader in manufacturing. India elephant has just woken up from looong sleep. First of all Indian people should understand this very clearly, "Investors only invest and create jobs if they get better returns than other available sources." This often means employing labor in low wage countries.The much touted technical expertise of Infotect is nothing but cheap labor, in reality. Why should otherwise I invest money if I can get 10.5% long run return in S&P 500? I expect to see greater return than that, and main reason for investing in India is cheap labor, that is plenty, which means low wage inflation rate. I think all software companies should be moved there, as well as, new manufacturing plants should be opened. Choice is again of Indian people to make. To die of hunger & poverty with dignity -or- work and earn money under a capitalist who is only interested in profits.Choice is yours.
