New Delhi, Mar 9 (KNN) The government has constituted a 17-member committee to recommend comprehensive reforms for India’s special economic zones (SEZ) policy and help formulate a SEZ 2.0 framework, an official said.
The panel will submit a concept paper or policy roadmap within six months outlining recommendations for broad reforms in the SEZ ecosystem.
The panel includes representatives from the Ministry of Commerce and Industry, NITI Aayog, Department for Promotion of Industry and Internal Trade (DPIIT), Central Board of Indirect Taxes and Customs (CBIC), the Directorate General of Export Promotion, the Export Promotion Council for SEZs, two development commissioners, and the Department of Economic Affairs, PTI reported.
Review of SEZ Act and Other Export Schemes
The committee will examine the effectiveness of the Special Economic Zones Act, 2005 in the current global trade and investment environment.
It will also study harmonisation of SEZ policies with other export promotion schemes such as export-oriented units (EOUs), the Manufacturing and Other Operations in Warehouse (MOOWR) scheme, Advance Authorisation, the Export Promotion Capital Goods Scheme (EPCG) and Duty Free Import Authorisation (DFIA) to address policy distortions and streamline incentives.
Focus on Investment, Exports and Operational Issues
The panel will assess the impact of reforms related to domestic tariff area (DTA) sales, incentives, compliance requirements and operational flexibility on exports, investment, employment and ease of doing business.
It will also evaluate SEZs’ role in manufacturing, services, technology upgradation and MSME participation, while examining operational challenges faced by developers and units, including issues related to customs, taxation, compliance burden, infrastructure and stakeholder coordination.
Global Practices and Policy Roadmap
The committee will study international SEZ and free trade zone models, consult stakeholders including central and state governments, developers, industry associations and exporters, and recommend short-, medium- and long-term reforms, including possible amendments to the SEZ Act and rules along with an implementation roadmap.
SEZ Export Performance
India currently has 276 operational SEZs with 6,279 units, and exports from these zones rose 7.37 per cent to USD 172.27 billion in 2024–25, according to official data.
(KNN Bureau)
