India's SEZ Exports Soar 32% to Rs 11.70 Lakh Crore in FY26

There are 368 notified SEZs in India (as of February end) and the total investment in those areas stand at Rs 7.86 lakh crore, the official statement said.

SEZs employed over 31.73 lakh people (as of December 2025), it added.

The Union Budget 2026‑27 proposed a special one‑time measure to permit eligible SEZ manufacturing units to sell a prescribed proportion of output in the domestic tariff area at concessional duty rates. The quantity of such sales will be limited to a prescribed proportion of their exports.

"Necessary regulatory amendments will be undertaken to operationalise this provision while ensuring a level-playing field for units operating in the DTA," the government said.

The move aims to improve capacity utilisation, achieve economies of scale, reduce export costs and enhance the overall resilience of the SEZ ecosystem and boost global investor confidence.

Further, the extension of tax incentives for cloud and data-centre operations within SEZs is poised to attract global manufacturers and technology firms, further strengthening India's investment ecosystem.

By offering fiscal incentives, streamlined regulatory processes, and modern infrastructure, SEZs have enhanced India's global competitiveness. They have facilitated the growth of specialized industrial clusters, encouraged innovation and technological advancement, and positioned India as an attractive and reliable investment destination in the global market.

SEZs are designated areas within a country that operate under a distinct regulatory and fiscal framework to promote trade and investment.

Since the enactment of the SEZ Act in May 2005, these zones have significantly accelerated export growth while fostering industrial expansion across sectors, the statement noted. Beyond earning foreign exchange and building infrastructure, SEZs have contributed to the holistic development of local economies through direct and indirect employment generation, the emergence of new business ecosystems, and improved socio-economic outcomes.

In June 2025, the Government notified two new SEZs -- one at Sanand, Gujarat, and another at Dharwad, Karnataka -- for the manufacturing of semiconductors and electronic components, respectively.

- IANS