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The United Progressive Alliance coalition could suffer a backlash in rural areas in state polls in Punjab and Uttar Pradesh.
In a blow to the government's hopes, 304 applications for SEZ status will now be put on hold. The flagship industrial policy aims to give businesses a simpler operating environment. The delays highlight the difficulties India faces in setting up tax-advantaged capitalist enclaves similar to those that played a central part in China's emergence as a global manufacturing hub.
Since India's new Special Economic Zone Act came into effect last February, the government has approved 237 SEZs...
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