Commerce Ministry to Host Stakeholders’ Meeting on SEZ Challenges on June 30

The Commerce Ministry is convening a meeting of stakeholders on June 30 to discuss significant reforms related to Special Economic Zones (SEZs). Key topics on the agenda include the possibility of allowing Indian Rupee (INR) payments for services in the Domestic Tariff Area (DTA) from SEZs, job work conducted by these zones for DTA without a direct link to exports, import substitution, and the reform of free trade warehousing zones. A 17-member committee has been established to propose comprehensive reforms aimed at creating a “SEZ 2.0” policy, reflecting the evolved landscape of India’s trade policies since the original SEZ law was enacted in 2005.

This meeting could have significant implications for both the common citizen and the broader market. Allowing INR payments for DTA services from SEZs may enhance domestic businesses’ operational flexibility and overall participation in the economy. The reforms are likely to facilitate easier access to goods and services, potentially lowering costs for consumers. Furthermore, revitalization of SEZ operations could lead to job creation and stability, as the export figures from these zones have shown a concerning decline, dropping from $172.07 billion in 2024-25 to $133.45 billion in 2025-26.

Looking ahead, the government’s focus on SEZ reform indicates a commitment to adapt regulatory frameworks in tune with global trade realities. The committee’s concept paper aims to harmonize existing export promotion schemes, bolstering India’s capability to compete in international markets. Successful implementation of these reforms could rejuvenate the SEZ sector, improving export performance and reinforcing the ease of doing business in India. As the landscape of global trade continues to shift, ongoing assessments and adaptations in policy will be crucial for the sustained growth of these economic enclaves and the economy at large.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)