Do SEZs Deliver Inclusive Growth? A Case Study of Sri City SEZ
Year: 2025
Type: article
Abstract: Special Economic Zones (SEZs) continue to shape industrial policy in emerging economies, offering a framework for export-oriented industrialisation, investment attraction, and logisticsled regional growth. India’s SEZ programme has matured over nearly two decades, yet outcomes vary widely across locations, institutional models, and governance structures. This study evaluates Sri City SEZ in Andhra Pradesh as a contemporary example of a planned, diversified, and globally connected industrial ecosystem. The objective is to assess whether Sri City represents a balanced model of sustainable industrialisation by examining its economic efficiency, social inclusion, and environmental stewardship. The analysis employs a mixed-methods approach combining official SEZ performance metrics, secondary policy and institutional reports, field observations, and a household survey of 348 families in seven neighbouring villages. The findings indicate strong performance in investment mobilisation, export capability, and industrial diversification, supported by proactive governance and logistics advantages. However, the distribution of benefits is uneven. While local labour has shifted toward non-farm work, income mobility remains modest, welfare reliance persists among vulnerable groups, and gender participation in industrial employment is limited. The SEZ demonstrates structured environmental systems and renewable-energy adoption, yet its proximity to Pulicat Lake, a critical coastal ecosystem, requires heightened ecological monitoring and cumulative-impact oversight. Overall, Sri City presents a high-performing industrial hub with significant progress in economic and environmental dimensions but slower advancement in social inclusion and livelihood resilience. The results highlight the need for a coordinated policy effort linking industrial competitiveness with local skill development, mobility support, long-term rehabilitation for land-losing households, and continuous ecological vigilance. As India transitions toward the Development of Enterprise and Service Hubs (DESH) framework, lessons from Sri City suggest that successful SEZs must expand beyond infrastructure-driven growth models to embed deeper social and environmental responsibility
Authors: Samuel Gunnabathula, Anitha Mannem
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7115067865