Due to the war in the Middle East, global demand has decreased significantly. Which has also affected India’s exports. In such a situation, along with giving relief in duty to the manufacturing units coming in the Special Economic Zone, the government has also changed some rules. So that the goods of those companies can reach the domestic markets. Also, the country’s domestic supply can increase. Experts believe that SEZ companies will get relief, albeit minor. Let us also tell you what kind of opinion has been given by Xert on this decision of the government.
SEZ will get relief
Experts said the one-time duty concession given to manufacturing units located in Special Economic Zones (SEZs) will give them limited domestic market access while maintaining exports. Experts also said that the potential benefits of these Special Economic Zones are limited by the relatively modest duty relief given that they are not designed on the principle of foregone duty. The government has given limited duty concessions for one year to SEZ units to help them sell their goods in the domestic market in view of the decline in global demand.
Will get help in domestic market
Gulzar Didwania, partner at Deloitte India, said the result is that the measure fails to fully address the objective of import substitution or significantly encourage domestic procurement by SEZ units for domestic duty area (DTA) needs. He said the measure reflects a subtle change in India’s export strategy, allowing limited domestic market access to SEZ units while preserving their export-oriented character.
Which sectors will benefit?
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the measure comes at an important time for the industry and will help ease cost pressures, improve liquidity and support production continuity for textile and apparel exporters. He said this measure is especially important for textile and apparel exporters who are currently facing rising costs, pricing pressures and uncertain global demand.
Big relief received from the government
According to a government notice issued on Tuesday, India will provide temporary relief in custom duty on goods manufactured in Special Economic Zones (SEZ) and sold in the domestic market. It has been told in the notice that these lower rates of duty will be between 5 percent to 12.5 percent for different industries. This relief will be applicable from April 1, 2026 to March 31, 2027 and will be available to those businesses which started production on or before March 31, 2025.