Flawed Strategy

I completed my last post with a question what stops investors to set up in SEZ notified land banks here.

India’s SEZ Policy is the bottle neck here. There is a condition in the SEZ rules that products developed inside the SEZ notified zones should be exported 100 % which means that the software products developed in the SEZs should necessarily be exported. At present there are very less firms that 100 % export software from Madurai (Actually this SEZ Policy is said to have copied from that of China which doesn’t suit India). Rest other firms undertake local Indian projects and some handle a mixture of Indian and export software projects. So, if they plan to move into the SEZs, they have to hold two offices for which they have to pay two different rents hence increasing the costs. So, the Software Industries Development Association of Madurai (Actually, there is an association for the welfare of software firms in Madurai) have requested cancellation of SEZ status which we expect will happen soon. Will meet you guys with a different post on Madurai software scenario on 1^st April.

Guys, I know that I am not posting in regular intervals because I started in a different day. So, I request  followers to check this blog every Sunday because I have planned to post in this blog every week on Saturday. Please follow the blog every Sunday starting from 1^st April. And post your comments and suggestions for improving the blog are welcome so that we could even have discussions on it.

Thanks.