India Eases Customs Duty for SEZ-Manufactured Goods

India is set to temporarily reduce customs duties for goods produced in Special Economic Zones (SEZs) and sold domestically. The new rates, ranging from 5% to 12.5%, will apply from April 1, 2026, to March 31, 2027, benefiting businesses that began operations by March 31, 2025.

The Indian government announced a temporary reduction in customs duties for goods manufactured in Special Economic Zones (SEZs) and sold within the domestic market. According to a recent notice, this relief measure will see duties lowered to between 5% and 12.5% across various industries.

The reduced rates are set to take effect from April 1, 2026, providing a significant cost reduction for businesses operating within SEZs. This initiative aims to boost the local economy by making domestically produced goods more competitive against imports.

Eligibility for the reduced rates will be limited to businesses that commenced production on or before March 31, 2025. The incentive is part of broader efforts to enhance industrial growth and drive economic recovery in the coming years.