India government explores relief measures to boost SEZ production

Speaking during a visit to Brandix textile units in the Andhra Pradesh SEZ, Goyal said the ministry is exploring ways to promote excess capacities in these zones for use in India's domestic market.

"This will also serve as import substitution, as many goods entering India from other countries currently receive better benefits than SEZ supplies to domestic tariff areas," the minister explained. "We are trying to bridge that gap and are hopeful that output from all SEZs will increase significantly."

The minister, who was in Anakapalli to attend the CII Partnership Summit 2025, added that SEZ Commissioners from across the country have been instructed to hold a meeting next week.

They will visit Brandix Park and the Andhra Pradesh MedTech Zone to study infrastructure standards that could help make all SEZs world-class facilities.

When questioned about whether the commerce ministry would introduce legislation in Parliament to extend relief to these zones, MInister Goyal said the government is examining all possibilities, including whether changes require amendments to existing laws or can be implemented through rules.

Regarding proposals to allow SEZs to sell products in the domestic tariff area on a duty-foregone basis, the minister confirmed that all proposals are under consideration.

"We will try to do whatever is best based on inter-ministerial consultations, in the interests of both SEZ and DTA units," he said.

The minister's remarks come as industry representatives have been requesting permission to sell SEZ-manufactured products in the domestic market.

Currently, SEZ units can sell products in the domestic market only by paying duties on finished goods. These zones are treated as foreign territories for trade purposes, with restrictions on duty-free domestic sales.

While companies in SEZs can import materials duty-free, the finished products must be exported or sold domestically with applicable duties paid on the output. (ANI)