17-Member Panel Set To Submit SEZ Reform Report To Commerce Ministry

New Delhi, Jul 20 (KNN) A 17-member committee constituted to recommend reforms to India's Special Economic Zone (SEZ) policy is expected to submit its report to the Ministry of Commerce.

The report, to be submitted to Commerce Secretary Rajesh Agarwal, is expected to recommend measures to revamp the SEZ framework to boost domestic manufacturing, exports and import substitution.

Focus On Harmonising Export Promotion Schemes

The committee has held consultations with various stakeholders and examined issues relating to the functioning of SEZs, reported PTI.

A key focus has been the harmonisation of existing export promotion schemes, including Special Economic Zones (SEZs), Export-Oriented Units (EOUs), Manufacturing and Other Operations in Warehouse (MOOWR), Advance Authorisation, Export Promotion Capital Goods (EPCG) and the Duty-Free Import Authorisation (DFIA) scheme.

Policy And Legal Reforms Under Review

The panel's terms of reference include identifying operational, procedural and regulatory challenges faced by SEZ developers and units, reviewing the fiscal impact of SEZs, including revenue forgone through tax and duty exemptions, and assessing their contribution to exports, investment and economic activity.

It has also been tasked with recommending short-, medium- and long-term policy, legal and procedural reforms, including possible amendments to the SEZ Act and Rules, along with an implementation roadmap.

Review Driven By Changing Trade Landscape

The review comes as India's trade and manufacturing ecosystem has evolved significantly since the SEZ Act was enacted in 2005, requiring the policy framework to be aligned with current global trade dynamics.

According to official data, exports from SEZs increased 7.37 percent to USD 172.27 billion in 2024-25. India currently has 276 operational SEZs housing 6,279 units.

(KNN Bureau)