SEZ Relief: A Temporary Lifeline Amidst Global Economic Uncertainty

The government has announced a temporary policy to extend limited duty concessions for SEZs, allowing them to sell goods in the domestic market until March 2027. This measure aims to mitigate the pressures from global trade uncertainties without altering the export-focused nature of SEZs.

The government has introduced a temporary measure, extending limited duty concessions to manufacturing units in special economic zones (SEZs) for selling goods domestically. This is not a permanent policy change, but a strategic intervention to help SEZs address global economic uncertainties, according to finance ministry sources.

Intended as a one-time measure until March 2027, the concessions come with structured, rule-based safeguards. An export-linked cap, allowing up to 30% of export turnover for domestic sale, along with minimum value addition requirements, ensures a focus on manufacturing rather than trading.

This initiative is designed to support SEZs through global trade disruptions without disadvantaging domestic manufacturers. By allowing temporary entry into the domestic market at concessional rates, SEZs can maintain optimal capacity while continuing to focus primarily on exports.

(With inputs from agencies.)