New Delhi, March 28 (NationPress) The government reported that exports from active Special Economic Zones (SEZs) amounted to over Rs. 11.70 lakh crore during the fiscal year 2025-26 (up to December 2025), reflecting a significant increase of 32.02 percent compared to 2024.

As of the end of February, there are 368 recognized SEZs in India, with total investments reaching Rs 7.86 lakh crore, according to the official statement.

The SEZs have created employment for over 31.73 lakh individuals as of December 2025, the statement highlighted.

The Union Budget 2026-27 introduced a special one-time initiative allowing qualifying SEZ manufacturing units to sell a designated percentage of their output within the domestic tariff area at reduced duty rates. The volume of such domestic sales will be capped at a specific percentage of their exports.

The government stated, "Necessary regulatory changes will be made to implement this provision while ensuring fair competition for units in the Domestic Tariff Area (DTA)."

This initiative aims to enhance capacity utilization, achieve economies of scale, lower export costs, and bolster the overall resilience of the SEZ framework, thereby increasing global investor confidence.

Additionally, the continuation of tax benefits for cloud and data center operations within SEZs is expected to draw global manufacturers and technology companies, further fortifying India’s investment landscape.

By providing fiscal incentives, streamlined regulatory frameworks, and advanced infrastructure, SEZs have significantly improved India’s competitiveness on the global stage. They have spurred the development of specialized industrial clusters, fostered innovation and technological progress, and positioned India as a desirable and dependable investment hub.

SEZs are specific regions within a nation that operate under a unique regulatory and fiscal structure designed to stimulate trade and investment.

Since the implementation of the SEZ Act in May 2005, these zones have greatly accelerated export growth while promoting industrial development across various sectors, as noted in the statement. Beyond generating foreign exchange and enhancing infrastructure, SEZs have contributed to the comprehensive growth of local economies through both direct and indirect job creation, the establishment of new business ecosystems, and improved socio-economic outcomes.

In June 2025, the government announced the establishment of two new SEZs—one at Sanand, Gujarat, and another at Dharwad, Karnataka—specifically for the production of semiconductors and electronic components, respectively.