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India's SEZ Reboot: How New Flexibility Aims to Boost Global Competitiveness

The Commerce Secretary has promised to overhaul India's SEZ framework to make it more flexible. Industry stakeholders shared numerous operational challenges during a consultation meeting. These included issues with duty structures, compliance processes, and import monitoring systems. The government recognizes that evolving global trade dynamics require updated SEZ policies.

Key Points: Commerce Secretary Rajesh Agrawal Pledges Flexible SEZ Reforms

  • Government will review all stakeholder concerns for long-term SEZ solutions
  • Stakeholders raised issues with DTA transactions and duty foregone rules
  • IT sector highlighted classification delays and GST norm mismatches
  • Ministry acknowledges need to align SEZ policies with new trade patterns
2 min read

Ministry will work on practical solutions to build more flexible, globally competitive SEZ framework: Commerce Secretary

Commerce Secretary assures industry of practical solutions to make India's SEZ framework more flexible, efficient, and globally competitive after stakeholder consultations.

"The Ministry is committed to reforms that match evolving global trade dynamics and support ease of doing business for SEZs - Rajesh Agrawal"

New Delhi, Nov 21

The Commerce Secretary, Rajesh Agrawal, on Friday assured industry stakeholders that the government will review all concerns raised and work towards practical, long-term solutions to make India’s Special Economic Zone (SEZ) framework more flexible, efficient, and globally competitive.

Speaking at an industry interaction organised by the Export Promotion Council for EOUs & SEZs (EPCES) in Chennai, he said the Ministry is committed to reforms that match evolving global trade dynamics and support ease of doing business for SEZs across sectors.

He interacted with stakeholders from SEZ units, developers, and MSMEs, who highlighted challenges affecting operations, compliance processes, and trade competitiveness.

Participants raised concerns related to SEZ–Domestic Tariff Area (DTA) transactions, duty foregone rules, connectivity issues with ICEGATE, and complexities in the import monitoring system.

MSME representatives also spoke about the difficulties faced in reverse job work policies.

Stakeholders from the IT and IT-enabled services sector flagged unresolved issues around the classification of vacant built-up areas, delays in the renewal of Letters of Approval, and procurement verification requirements, which they said differ from Goods and Services Tax (GST) norms.

Several companies also highlighted the lack of parity between SEZ units and DTA units in accessing concessional import duties and duty drawback benefits.

Others pointed out procedural delays caused by the new Procurement Certificate system, while some raised concerns about countervailing duties imposed by the United States and the applicability of Quality Control Orders (QCOs) on SEZ-to-DTA sales.

Responding to these concerns, Rajesh Agrawal appreciated EPCES for facilitating direct dialogue between industry and government.

He said the Ministry understands the need to revisit policies as global supply chains evolve and domestic market demand grows.

He noted that changing trade patterns, new free trade agreements, and increased focus on expanding domestic market access require SEZ policies to be aligned with current economic realities.

Agrawal encouraged companies to share detailed data and structured feedback to support policy decisions and future reforms.

The Commerce Secretary also assured that technical concerns, including those related to BSNL connectivity and import monitoring systems, will be reviewed.

He said the government remains committed to building an SEZ ecosystem that is efficient, modern, and competitive at the global level.

- IANS

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Reader Comments

S
Sarah B
Good to see the government listening to industry concerns. The procurement certificate system has been creating unnecessary paperwork delays. Hope they simplify these processes to boost exports.
P
Priya S
As an MSME owner in a manufacturing SEZ, the reverse job work policies have been a major headache. Glad our voices are being heard. Hope the solutions are practical and not just more paperwork in different packaging.
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Michael C
The lack of parity between SEZ and DTA units in import duties has been unfair. This reform could level the playing field and make Indian exports more competitive globally. Good step forward!
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Anjali F
While I appreciate the intent, I hope this isn't just another 'assurance' that gets lost in bureaucracy. We've seen many such promises before. The proof will be in the implementation timeline and actual policy changes. 🤞
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Vikram M
The ICEGATE connectivity issues have been affecting our export documentation for months. If they can fix this technical infrastructure, it would save us countless hours and reduce compliance costs significantly.

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