Special Economic Zones (SEZs)
Policy Framework and Economic Impact
A Special Economic Zone (SEZ) is a geographically defined area within a country's borders where more liberal economic regulations apply than in the rest of the country. In India, SEZs were institutionalised under the SEZ Act, 2005, replacing the earlier Export Processing Zone (EPZ) framework.
- SEZ Act, 2005: Provides a single-window clearance mechanism, exemption from customs duties on imports, exemption from central excise on domestic procurement, income tax exemptions, and simplified labour compliance.
- As of 2025, India has over 250 notified SEZs, with the majority concentrated in IT/ITeS, textiles, gems and jewellery, and pharmaceuticals.
- SEZ exports constitute approximately 30–35% of India's total merchandise exports.
- Key controversies: SEZ land acquisition disputes (the Nandigram and Singur agitations in 2007–08 preceded the West Bengal left government's SEZ rollback), under-utilisation of notified SEZ land, and the 2023 Supreme Court ruling that struck down certain tax benefits — all contributed to a cautious reassessment of the SEZ model.
- The National Industrial Corridor Programme (connecting Delhi-Mumbai, Chennai-Bengaluru, Amritsar-Kolkata, and other corridors) partially subsumes the SEZ model by integrating industrial zones with dedicated freight corridor connectivity.
● Tracked since March 04, 2026 · last seen June 24, 2026 · updates as the daily brief publishes
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