India’s Special Economic Zones (SEZs) have long been instrumental in boosting exports, attracting investment, and fostering innovation-driven growth. As global trade dynamics evolve and domestic industries navigate shifting supply chains, the need for a responsive and globally competitive SEZ framework has become more critical than ever. Reflecting this priority, the Export Promotion Council for EOUs & SEZs (EPCES) organized a high-level industry interface in Chennai, bringing together over 150 stakeholders for an open interaction with Commerce Secretary Shri Rajesh Agrawal, IAS on November 21, 2025.
A Platform for Open Dialogue
The event served as a vital bridge between policymakers and industry, giving SEZ units, developers, and sectoral representatives the opportunity to present ground-level challenges that affect productivity and competitiveness. Participants raised a wide spectrum of issues—many technical but deeply impactful.
Key concerns included:
- Complexities in SEZ–Domestic Tariff Area (DTA) transactions,
- Clarifications on duty foregone implications,
- Persistent ICEGATE connectivity constraints,
- Problems with evolving import monitoring systems, and
- Reverse job work limitations, particularly affecting MSMEs.
Stakeholders from the IT/ITES sector flagged operational challenges around classification of vacant built-up area, delayed Letter of Approval (LoA) renewals, and procurement attestation requirements that deviate from GST norms—leading to compliance burdens.
Addressing Gaps in Parity and Policy
Participants also highlighted the lack of parity between SEZ units and DTA units under key incentive schemes. For instance, SEZ units do not always enjoy concessional import duty benefits or duty drawback advantages available to their DTA counterparts. Concerns were additionally raised regarding:
- Inefficiencies introduced by the new Procurement Certificate process,
- Countervailing duties imposed by the United States on certain exports, and
- The need to reconsider Quality Control Order (QCO) applicability for SEZ-to-DTA sales, especially in specific regions such as KASEZ.
These issues reflect the complexity of operating within India’s evolving regulatory landscape and the need for greater clarity, consistency, and alignment with global trade norms.
Government’s Assurance: Focus on Reform and Responsiveness
Responding to the discussion, the Commerce Secretary expressed gratitude to EPCES for facilitating such a meaningful industry-government dialogue. He emphasized that the Ministry would thoroughly examine each challenge raised and work toward actionable solutions to ease doing business within SEZs.
He acknowledged that current transformations in global value chains, growing demands for DTA access, and the emerging influence of Free Trade Agreements (FTAs) require SEZ policies that are aligned with present-day economic realities. Strengthening India’s SEZ ecosystem, he said, must be guided by long-term vision and data-driven policymaking.
The Secretary encouraged industry representatives to submit structured analyses and concrete data to support reform proposals. He also assured that operational concerns—such as BSNL connectivity issues and import monitoring system challenges—will be reviewed on priority.
A Step Toward a Future-Ready SEZ Framework
The interaction concluded with a strong commitment from the Ministry to build a more flexible, efficient, and globally aligned SEZ framework. By fostering transparency, collaboration, and responsiveness, this initiative marks an important step toward reinforcing India’s position as a competitive hub in global trade and investment.