India’s Commerce Ministry has scheduled a stakeholders’ meeting on June 30, 2026, to deliberate on an extensive policy overhaul for Special Economic Zones (SEZs). This meeting aims to address long-pending operational bottlenecks, boost country-wide export competitiveness, and ultimately formulate a modernised “SEZ 2.0” policy. According to senior government officials, the upcoming discussions will focus heavily on harmonising various overlapping export promotion schemes.
A major catalyst for this policy review is the shifting dynamic in international trade since the original SEZ Act was established over two decades ago, in 2005. The economic necessity for reforms is highlighted by recent performance indicators. Total exports originating from India’s SEZs declined notably, falling to $133.45 billion in the 2025-26 fiscal year from $172.07 billion in 2024-25. Currently, the nation has 276 operational SEZs that collectively host 6,695 units, all of which are subject to existing regulatory constraints.
To prepare for this comprehensive overhaul, the government earlier relaxed structural land requirements. This strategic move helped pave the way for massive investments, such as Micron Semiconductor’s facility in Gujarat, which is set to anchor a domestic chip-making ecosystem. Following these adjustments, the ministry also constituted a 17-member expert committee to conduct a background study to streamline the SEZ framework alongside other prevalent operational models. These include Export-Oriented Units (EOUs), Manufacturing and Other Operations in Warehouse Regulations (MOOWR), Advance Authorisation (AA), Export Promotion Capital Goods (EPCG), and the Duty-Free Import Authorisation (DFIA) scheme.
Key structural pain points scheduled for evaluation during the June 30 session include allowing Indian Rupee (INR) transactions for services provided by SEZs to the Domestic Tariff Area (DTA). Stakeholders will also evaluate the permitting of DTA job work by SEZ units without a direct link to export targets, the implementation of targeted import substitution strategies, and the reform of Free Trade Warehousing Zones (FTWZs).
