Government Unveils Special Economic Zones Duty Relief Amid Global Market Challenges

The government has announced a significant relief measure for India's special economic zones (SEZs) to mitigate global market uncertainties. This one-time duty relief aims to assist SEZ units through certain duty benefits.

According to the notification dated March 31, units that commenced production on or before March 31, 2025, are eligible for exemptions, provided they meet specific conditions. Effective from April 1, 2026, this relief is contingent on producing goods with at least 20% value addition within the SEZ.

Finance Minister Nirmala Sitharaman's budget proposition introduces this measure to address the domestic market challenges faced by SEZs amidst global disruptions. It facilitates sales to the Domestic Tariff Area (DTA) at reduced duties, offering units a chance to shift excess production to the domestic market and alleviate underutilization concerns.