India's Strategic Relief: Temporary Customs Duty Cut for SEZ Goods

In a significant economic move, India has announced a temporary customs duty relief for goods produced in Special Economic Zones (SEZs) and sold within the domestic market, as detailed in a government notice issued Tuesday.

Starting from April 1, 2026, through March 31, 2027, the reduced duty rates, ranging from 5% to 12.5%, will benefit a spectrum of industries, with specific reductions on certain industrial chemicals and fertilizers to 6.5% from 7.5%.

This initiative follows a February concession that enabled eligible SEZ manufacturing units to sell domestically at a decreased duty rate, aimed at assisting exporters coping with rising U.S. tariffs and geopolitical uncertainty.