The Commerce Ministry held a stakeholders’ meeting on June 30 to discuss issues related to special economic zones, including reforms aimed at harmonizing export promotion schemes and facilitating business operations in the enclaves.
The Commerce Ministry held a stakeholders’ meeting on June 30 to discuss issues related to special economic zones, including reforms aimed at harmonizing export promotion schemes and facilitating business operations in the enclaves.The meeting will focus on issues related to harmonization of export promotion schemes and SEZ reforms, an official told news agency PTI.Issues that are expected to emerge in the deliberations include payment of INR to SEZs for Domestic Tariff Area (DTA) services; Functional work carried out by DTA SEZ units without being linked to exports; Import substitution and reforms in free trade warehouse areas; and measures to further enhance the ease of doing business in these enclaves.The government has formed a 17-member committee to recommend broader reforms to the SEZ policy.It is also conducting a baseline study on coordination of various export promotion schemes, including Special Economic Zones, Export Oriented Units (EOUs), Manufacturing and Other Warehouse Operations (MOOWR), Advance Authorization (AA), Export Promotion Capital Goods (EPCG) and Duty Free Import Authorization (DFIA).
The committee will present a concept paper recommending a roadmap for wide-ranging and comprehensive reforms under the proposed Special Economic Zone 2.0 policy.The move assumes significance as the SEZ Law was enacted in 2005 under a different trade policy environment, while global trade conditions have since witnessed significant changes.SEZs are treated as foreign territories for customs-related laws, including trade and import duties, with restrictions on duty-free domestic sales.Exports from these regions decreased to $133.45 billion in 2025-2026 from $172.07 billion in 2024-2025. India currently has 276 operational SEZs comprising 6,695 units.