Union Commerce and Industry Minister Piyush Goyal on Saturday said the Centre is assessing a series of proposals aimed at easing operational constraints in Special Economic Zones (SEZs) and improving their contribution to domestic industry. He indicated that the government is examining whether policy adjustments, including potential legislative changes, could help bridge long-standing gaps between SEZ and domestic tariff area (DTA) regimes.
During a visit to the Brandix textile units within the Andhra Pradesh SEZ at Anakapalli, the minister said the government is exploring ways to promote the use of surplus manufacturing capacities for the domestic market. “This will also serve as import substitution, as many goods entering India from other countries currently receive better benefits than SEZ supplies to domestic tariff areas,” he said. “We are trying to bridge that gap and are hopeful that output from all SEZs will increase significantly.”
The minister was in the district to attend the CII Partnership Summit 2025. He said cCommissioners from across the country have been directed to convene next week and undertake visits to Brandix Park and the Andhra Pradesh MedTech Zone. The purpose, he said, is to assess infrastructure and operational standards that could help shape a framework for world-class SEZs.
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Asked whether the Centre would introduce legislation to extend relief to SEZs, Goyal said all possibilities were being examined. The ministry was studying whether specific measures would require amendments to existing laws or could be implemented through changes in rules.
Industry representatives have long urged the government to permit duty-free domestic sales from SEZs. At present, these zones are treated as foreign territories for trade purposes, restricting duty-free supplies to the domestic market. While units may import raw materials duty-free, they must either export finished goods or pay applicable duties for domestic sale.
Responding to questions on proposals to allow sales to the DTA on a duty-foregone basis, the minister said, “We will try to do whatever is best based on inter-ministerial consultations, in the interests of both SEZ and DTA units.”
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