Exports from operational special economic zones (SEZs) in India reached over Rs. 11.70 lakh crore in the fiscal year 2025-26, showing a significant 32.02% increase from the previous year. As of December 2025, there are 368 notified SEZs in the country, with a total investment of Rs. 7.86 lakh crore. These SEZs have provided employment to more than 31.73 lakh individuals.
The Union Budget for 2026-27 has introduced a special one-time measure allowing eligible SEZ manufacturing units to sell a portion of their output in the domestic tariff area at concessional duty rates. This move, aimed at enhancing capacity utilization and reducing export costs, will be regulated to maintain fairness for units in the domestic tariff area.
Additionally, tax incentives for cloud and data-center operations within SEZs have been extended to attract global manufacturers and technology companies, further solidifying India’s investment landscape. By offering fiscal benefits, efficient regulatory processes, and modern infrastructure, SEZs have bolstered India’s global competitiveness, fostering specialized industrial clusters, innovation, and technological progress.
SEZs, operating under a distinct regulatory and fiscal framework to promote trade and investment, have significantly boosted export growth and industrial expansion since the SEZ Act was enacted in May 2005. These zones have not only contributed to foreign exchange earnings and infrastructure development but have also played a vital role in the comprehensive development of local economies through job creation, new business ecosystems, and improved socio-economic conditions.
In a recent development, the Government has announced the establishment of two new SEZs in Sanand, Gujarat, and Dharwad, Karnataka, for the production of semiconductors and electronic components, respectively.
