New Delhi — Exports from India’s operational Special Economic Zones (SEZs) recorded a sharp rise of 32.02 per cent to over Rs 11.70 lakh crore in 2025-26 (till December 2025), according to the Government of India.
As of the end of February, the country had 368 notified SEZs, with total investments in these zones reaching Rs 7.86 lakh crore. The zones have also generated employment for more than 31.73 lakh people as of December 2025, the official statement noted.
In a move aimed at boosting efficiency, the Union Budget 2026-27 proposed a one-time measure allowing eligible SEZ manufacturing units to sell a specified portion of their output in the domestic tariff area at concessional duty rates. Such sales will be capped as a proportion of their exports. The government said regulatory amendments would be introduced to implement the provision while maintaining a level playing field for units operating in the domestic tariff area.
The initiative is expected to improve capacity utilisation, achieve economies of scale, lower export costs and strengthen the overall resilience of the SEZ ecosystem, while enhancing global investor confidence.
The government also highlighted that extending tax incentives for cloud and data-centre operations within SEZs is likely to attract global manufacturers and technology firms, further reinforcing India’s investment environment.
By offering fiscal incentives, streamlined regulations and modern infrastructure, SEZs have improved India’s global competitiveness. They have supported the growth of specialised industrial clusters, encouraged innovation and helped position India as an attractive destination for global investment.
Since the implementation of the Special Economic Zones Act in May 2005, SEZs have played a key role in accelerating exports and industrial expansion. Apart from generating foreign exchange and infrastructure, they have also contributed to local economic development through employment generation and the creation of new business ecosystems.
In June 2025, the government notified two new SEZs — one in Sanand, Gujarat, for semiconductor manufacturing and another in Dharwad, Karnataka, for electronic components production.
With inputs from IANS