The Ministry of Commerce and Industry published Special Economic Zones (Amendment) Rules, 2025.
Important provisions
- SEZ set up exclusively for semiconductors or electronics will require a minimum contiguous land of 10 hectares, reduced from the earlier requirement of 50 hectares.
- Units providing semiconductor manufacturing, the value of goods received or exported on a free-of-cost (FOC) basis must now be included in NFE calculations.
- Net Foreign Exchange (NFE) refers to the difference between a company's foreign exchange earnings (primarily from exports) and its foreign exchange expenditures (primarily from imports).
What is SEZ?
- Definition: SEZ is a geographically delineated duty-free enclave and shall be deemed to be a foreign territory for the purposes of trade operations and duties and tariffs.
- SEZs Policy was announced in 2000, and the SEZ Act was passed in 2005.
- Objectives of the SEZ Scheme: Generation of additional economic activity, promotion of exports of goods and services, employment generation, etc.
- Baba Kalyani committee recommendations for SEZs: Need Framework shift from export growth to (Employment and Economic Enclaves-3Es), separate rules for services and manufacturing, etc.
Initiatives
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