India's Strategic Relief: Temporary Customs Duty Cut for SEZ Goods

India announces temporary customs duty relief for goods manufactured in Special Economic Zones, effective from April 1, 2026, to March 31, 2027. The measure aims to benefit industries by reducing duty rates, particularly on industrial chemicals and fertilizers, and to support exporters challenged by U.S. tariffs and geopolitical tensions.

In a significant economic move, India has announced a temporary customs duty relief for goods produced in Special Economic Zones (SEZs) and sold within the domestic market, as detailed in a government notice issued Tuesday.

Starting from April 1, 2026, through March 31, 2027, the reduced duty rates, ranging from 5% to 12.5%, will benefit a spectrum of industries, with specific reductions on certain industrial chemicals and fertilizers to 6.5% from 7.5%.

This initiative follows a February concession that enabled eligible SEZ manufacturing units to sell domestically at a decreased duty rate, aimed at assisting exporters coping with rising U.S. tariffs and geopolitical uncertainty.