The government is examining proposals to roll out certain relief measures to boost production in Special Economic Zones (SEZs), Commerce and Industry Minister Piyush Goyal said on Saturday.
He also said the ministry is looking at ways and means to promote excess capacities in these zones for use in the domestic market in India.
This will be in a way also an import substitution because many goods that come into India from other countries get better benefits than the SEZ supplies to DTAs (domestic tariffs areas), he said while visiting Brandix textiles units in Andhra Pradesh SEZ.
31 October 2025
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"We are trying to bridge that gap and we are very hopeful that soon the output from all the SEZs will increase in a big way.
"We are also examining what further relief we can give to the SEZs so that we can increase production in these zones," he said.
The minister was here to attend CII Partnership Summit 2025.
He added that the SEZ Commissioners of the country have been asked to hold a meeting next week.
They will be visiting Brandix Park and AMTZ (Andhra Pradesh MedTech Zone) park to see how quality infrastructure should be built and maintained so that all SEZs can be world class, Goyal said.
When asked if the commerce ministry will bring a bill in Parliament for extending relief to these zones, he said:"We are examining all possibilities, if it needs amendment in law or some of it can be done through rules." Whether the ministry is considering a proposal to allow sale of products from SEZs to DTA on duty foregone basis, Goyal said all proposals are under consideration.
"We will try to do whatever best we can get from the inter-ministerial consultations, in the best interests of both SEZ and DTA units," he said.
These remarks are important as the industry is requesting the Centre to permit them sale of products manufactured in SEZs in the domestic market on payment of duty foregone on inputs as that would help promote value addition.
At present, units in SEZs are allowed to sell their products in the Domestic Tariff Area (DTA or domestic market) on payment of duties on an output basis (finished goods).
These zones are treated as foreign territories for trade and duties, with restrictions on duty-free domestic sales.
Companies operating within SEZs are allowed to import materials and components duty-free, with the condition that the finished goods produced are meant to be exported out of India and sold in the Indian domestic market on payment of applicable duties on the output.
SEZs have emerged as an important contributor to India's exports. Total exports from these zones stood at $176.6bn in 2024-25.
