Question

What was the primary objective of the Baba Kalyani Committee constituted in 2018 ?

• A. Redefining the roles of small scale industries in the Indian economy
• B. Evaluating and restructuring the manufacturing policy for greater effectiveness
• C. Assessing the impact and potential of the Special Economic Zone (SEZ) policy
• D. Analyzing the current industrial policy framework for necessary amendments

Answer 1

Answer:

C. Assessing the impact and potential of the Special Economic Zone (SEZ) policy

Baba Kalyani Committee

• The Union Commerce Ministry formed a committee led by Baba Kalyani, the chairman of Bharat Forge, in June 2018.
• The committee was established to align India's special economic zone (SEZ) policy with the regulations of the World Trade Organisation (WTO) after the US challenged India's export subsidy program at the WTO.
• Its main objectives were :
  • To evaluate the SEZ policy to make it WTO compatible
  • Propose measures to maximize the utilization of vacant land in SEZs
  • Suggest policy changes based on global practices
  • Integrate the SEZ policy with other major government initiatives.
• The committee submitted its report to the then Commerce Minister Suresh Prabhu in New Delhi on November 19, 2018.

Recommendations of the Baba Kalyani committee were :

• Rename SEZs in India as 3Es- Employment and Economic Enclave
• Framework shift from export growth to broad-based employment and economic growth
• Separate rules and procedures for manufacturing and service SEZs
• Ease of Doing Business (EoDB) in 3Es such as one integrated online portal for new investments
• Extension of Sunset Clause and retaining tax or duty benefits
• Unified regulator for IFSC
• Dispute resolution through arbitration and commercial courts