The SEZ Act, 2005 was promoted in India with the prime objective of acceleration of industrialization, and in turn, enhancing the employment opportunities available to people. There is a big controversy over the activities of SEZs in India. Many of the SEZs are taking away the land from the farmers, making them landless labourers. Some SEZs are procuring the land without paying proper compensation to the owners. Some have not even initiated the process of setting up industries, and are simply keeping the procured land idle. Hence, in the present study, the authors made an attempt to study the activities of SEZs with special focus on Nellore district in Andhra Pradesh. The highly debatable and controversial issue in the recent past is the Special Economic Zone Act, which was passed in the Parliament in 2005. The Union Government declared that the aim and objectives of the Act are to attract Foreign Direct Investment, lead to acceleration of industrialization, provide employment opportunities on a large scale to the people, and to make available the basic amenities to the people. But (regarding this Act) there were antagonistic views in the government itself. The then finance minister said that by giving various concessions to the SEZs, the government would have to bear heavy losses amounting to crores of rupees to the State exchequer. On the other hand, the Ministry of Commerce, Govt, of India opined that SEZs would work as an engine in accelerating industrialization in India. In this way, the SEZ Act was constantly enveloped in controversy. It is made clear in the paper that when the people are looking for "development," the policy makers are looking for "rowth" or "inclusive growth," which, it is clear (in case of SEZs), has only been an illusion as the SEZs, till this date, have not been able to fulfill their objective of providing much growth, leave alone inclusive growth.

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