CII says India needs to develop multi-product mega special economic zones with strong civic infrastructure and residential facilities. To prevent becoming a drain on the re4sources of existing urban centres, CII has advocated locating these SEZs away from existing towns and cities.

In a statement, CII has advocated that the government's focus should be on creating multi-product mega SEZs, while the states should be allowed to auction land. The statement also says that each state should permitted only one such project to start with.

It says SEZs can help fuel manufacturing and exports-based growth to supplement the service sector that has been growth driver for the country, but a 10-hectare minimum area was too small to support any meaningful infrastructure creation. IT has also called for a review of very small SEZs that have already been sanctioned.

CII says that SEZs should address reduction of taxation, of transaction cost and improvement of infrastructure, which has burdened various sectors including manufacturing in India.

IT says that government plays an important role in mitigating risks in investment, when markets do not yield desirable results.

CII also said schemes promoting export oriented units (EOUs) and export processing zones (EPZs) must continue simultaneously with SEZs and the proposal to discontinue the EOU scheme in 2009 should be reviewed.