In the post globalization era, India like other developing economies has vigorously followed export promotion policy, a shift away from import substitution based development strategy. In consonance with this strategy Indian government started promoting Special Economic Zones (SEZs) which expanded the role of the states enormously and shifted the onus of economic development on the states. With the passage of SEZ policy 2000 and enactment of SEZ Act 2005 doors have been opened in India for large scale acquisition of agricultural land for development of SEZs by many Indian states. Acquired land will be transferred to private capitalists for developing and maintaining these SEZs which will enjoy wide range of tax concessions, incentives and minimal regulations with the sole purpose of developing infrastructure needed for industrial development, promoting exports, attracting domestic as well as foreign direct investment (FDI) and generating employment. In the context of this neo liberal development agenda present paper seeks to analyze current status of SEZs in India and benefits of establishing SEZs in terms of employment generation and exports. The paper further attempts to develop a critique of the way land has been expropriated resulting in large scale proletarianization of peasants and discusses various other issues and challenges. Finally some policy intervention is suggested for protecting workers’ interests and forging a link between SEZs and outside economy.

KEYWORDS:  SEZs, Development, Employment, Exports, Expropriation, Workers’ Interests.