India Reviews SEZ Relief To Boost Output, Weighs Domestic Use Of Excess Capacity
Piyush Goyal says options under review include duty-foregone DTA sales, with changes potentially requiring rules or legislation.
Overview
- Commerce ministry officials are evaluating relief measures to increase production in Special Economic Zones, with no policy changes finalized yet.
- The review includes enabling SEZ units to serve India’s domestic market using unused capacity, framed as an import-substitution opportunity.
- Allowing sales from SEZs to the Domestic Tariff Area on a duty-foregone (inputs) basis remains a proposal under consideration.
- SEZ Commissioners have been tasked to meet next week and visit Brandix Park and the Andhra Pradesh MedTech Zone to study infrastructure standards.
- The government is consulting across ministries to determine whether adjustments can proceed through rules or require amendments to law, as SEZs contributed an estimated $176.6 billion in exports in 2024–25.