India Weighs Relief To Lift SEZ Output, Eyes Easier Domestic Sales

Piyush Goyal said proposals, including duty‑foregone sales into the domestic market, are under inter‑ministerial review.

Overview

SEZ Commissioners have been called to a meeting next week with site visits to Brandix Park and AMTZ to study infrastructure and quality standards.
The commerce ministry is evaluating whether any relief requires amending the law or can be implemented through rules.
Officials aim to tap excess SEZ capacity for the domestic market as a form of import substitution where imports now enjoy a benefit edge.
Under current rules, SEZ units may sell domestically only by paying duties on finished goods because the zones are treated as foreign territories.
SEZs generated USD 176.6 billion in exports in 2024–25, highlighting the potential economic impact of the proposed changes.