SEZs Get Duty Concessions to Boost Domestic Sales Amid Global Uncertainties
The government has announced limited duty concessions for Special Economic Zones (SEZs) to support domestic sales amidst weak global demand. This measure, effective from April 2026, allows qualifying SEZ units to sell goods domestically at reduced customs duties. The aim is to alleviate capacity utilization challenges due to global trade disruptions.
- Country:
- India
In a bid to bolster domestic sales amid subdued global demand, the government has rolled out limited duty concessions for Special Economic Zones (SEZs), effective between April 1, 2026, and March 31, 2027. The measure targets manufacturing units that can now market their products locally at reduced customs duties.
The policy covers a wide spectrum of products, including chemicals, textiles, footwear, and machinery, sold by SEZ units. To qualify for the benefits, units must have commenced production by March 31, 2025. It also mandates goods to undergo a minimum value addition of 20%.
This initiative follows Finance Minister Nirmala Sitharaman's budgetary proposal aimed at addressing manufacturing capacity utilization issues due to global trade disruptions. SEZ units will be allowed to sell up to 30% of their highest annual export FOB value in the domestic market at concessional rates.
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