The Central government is examining proposals to roll out certain relief measures to boost production in Special Economic Zones (SEZs), Union Commerce and Industry Minister Piyush Goyal said on Saturday. He said the ministry is looking at ways and means to promote excess capacities in these zones for use in the domestic market in India.
This will be in a way also an import substitution as many goods that come into India from other countries get better benefits than the SEZ supplies to domestic tariffs areas (DTAs), he said while visiting Brandix textiles units in the Andhra Pradesh SEZ here.
"We are trying to bridge that gap and we are very hopeful that soon the output from all the SEZs will increase in a big way. We are also examining what further relief we can give to the SEZs so that we can increase production in these zones," he said.
The minister, who was here to attend the CII Partnership Summit 2025, said the SEZ Commissioners of the country have been asked to hold a meeting here next week. They will be visiting Brandix Park and AMTZ (Andhra Pradesh MedTech Zone) park to see how quality infrastructure should be built and maintained so that all SEZs can be world class, Goyal said.
When asked if the commerce ministry will bring a Bill in Parliament for extending relief to these zones, he said, "We are examining all possibilities, if it needs amendment in law or some of it can be done through rules, and whether the ministry is considering a proposal to allow sale of products from SEZs to DTA on duty foregone basis. We will try to do whatever best we can get from the inter-ministerial consultations, in the best interests of both SEZ and DTA units,” Goyal said, adding that all proposals are under consideration.
These remarks are siginificant, considering that the industry is requesting the Centre to permit them sale of products manufactured in SEZs in the domestic market on payment of duty foregone on inputs as that would help promote value addition. At present, units in SEZs are allowed to sell their products in the domestic tariff area on payment of duties on an output basis (finished goods). These zones are treated as foreign territories for trade and duties with restrictions on duty-free domestic sales.
Companies operating within SEZs are allowed to import materials and components duty-free with the condition that the finished goods produced are meant to be exported out of India and sold in the Indian domestic market on payment of applicable duties on the output. SEZs have emerged as an important contributor to India's exports. Total exports from these zones stood at USD 176.6 billion in 2024-25.
Also read: Exploring all possibilities on FTA with Canada: Goyal
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