Impact assessment of special economic zone on the development of its surrounding areas: a case of Indore

Abstract

The present concept of SEZ has evolved and grown from the experiences of similar establishments over the past decades. It has matured from the initial concept of free ports where storage. handling and even manufacturing of goods were allowed free from customs duty. With advantages like good infrastructure, excellent location, simplified operating environment, and world-class facilities, they have been used as models for enhancing export and having a global interface. In the present study, attempt is made to understand how SEZs have made an impact on the surrounding area in terms of economic and spatial indicators or the surrounding as a whole. After identifying the various indicators, which have an impact on the study area, these indicators will be used as a base for the in-depth analysis, in order to find the spatial and economic Impacts and the issues arising out of it. The site is located in Pithampur in the Indore District of Madhya Pradesh state. Being located close to Indore city, Pithampur is easily accessible via road and public transport, which serves as a major economic hub through its facilities and services and is the destination for upcoming IT and Industrial corridors. The Pithampur SEZ is also close to the proposed Delhi—Mumbai Industrial Corridor which, when completed, will be accessible via the NH-59 Highway. The establishment of SEZ and industrialization has brought a change in the demographic pattern, migration, employment opportunities which will add to the demand for housing and real estate services. Because of the establishment of SEZ, the change in settlement pattern, which will go through a phase of urbanization in the future, is bound to have an impact on spatial, social, economic, and real estate development. The rate at which the population of the study area is increasing will in turn increase the demand on-property services and add to the pressure on the real estate market also. The demographic profile of the study area near SEZ is set to alter further with better connectivity to Indore by existing national highway 52. This is expected to reduce the commuting time to less than one hour and observers forecast more investment in the study area, resulting in the creation of jobs that will usher in the service sector as well. The development site i.e., Pithampur, SEZ is surrounded by various rural and urban zones in the area. There are also various residential and urban areas surrounding the development site, including housing colonies developed bygovernment authorities and private developers, with a total of more than 74,000 households that are connected by road networks and directly accessible from the main highway. The Pithampur is also close to other industrial zones.