In FY24, special economic zones (SEZs) recorded a robust increase of over 4% in exports, amounting to US$ 163.69 billion. Data from the commerce ministry highlights that these zones significantly contributed to the country’s export landscape, with US$ 157.24 billion and US$ 133 billion exports recorded in the preceding fiscal years, 2022-23 and 2021-22, respectively. SEZs, recognized as pivotal export hubs, accounted for over one-third of India’s overall outbound shipments during this period.
SEZs are designated areas with foreign territory status for trade and customs duties, featuring restrictions on duty-free sales beyond these zones within the domestic market. Presently, the government has sanctioned 423 SEZs, out of which 280 are operational as of March 31, 2024, attracting a cumulative investment exceeding US$ 82.79 billion (Rs. 6.92 lakh crore) and offering employment opportunities to approximately 30.70 lakh individuals. Noteworthy export destinations include the United Arab Emirates, the US, the UK, Australia, and Singapore. The government is contemplating several measures to invigorate these zones, including a flexible framework for the domestic market sale of SEZ-manufactured products and streamlining unit approval processes. Additionally, recommendations from the Global Trade Research Initiative (GTRI) advocate for allowing the sale of SEZ-manufactured goods in the domestic market upon payment of duties foregone on inputs, aiming to foster value addition.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
