3 months ago
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Finance Minister Nirmala Sitharaman connected Sunday (February 1, 2026) projected a peculiar one-time measurement to facilitate income by eligible manufacturing units successful peculiar economical (SEZs) to the home tariff country astatine concessional rates of duty.
Ms. Sitharaman was presenting her ninth consecutive Union Budget for April 2026 to March 2027 successful the Parliament connected Sunday (February 1).
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It was a request from the manufacture arsenic they were facing issues related to utilisation of capacities successful the SEZ units owed to precocious tariffs successful the U.S.
"To code the concerns arising astir utilisation of capacities by manufacturing units successful the SEZs owed to planetary commercialized disruptions, I propose, arsenic a peculiar one-time measure, to facilitate income by eligible manufacturing units successful SEZs to the DTA astatine concessional rates of duty," she said successful her Budget speech.
The quantity of specified income volition beryllium constricted to a prescribed proportionality of their exports.
Ms. Sitharaman said that indispensable regulatory changes volition beryllium undertaken to operationalise these measures portion ensuring level-playing tract for the units moving successful the DTA.
The manufacture had earlier requested the Centre to licence them merchantability of products manufactured successful SEZs successful the home marketplace connected outgo of work foregone connected inputs arsenic that would assistance beforehand worth addition.
At present, units successful SEZs are allowed to merchantability their products successful the Domestic Tariff Area (DTA oregon home market) connected outgo of duties connected an output ground (finished goods).
These zones are treated arsenic overseas territories for commercialized and duties, with restrictions connected duty-free home sales.
Companies operating wrong SEZs are allowed to import materials and components duty-free, with the information that the finished goods produced are meant to beryllium exported retired of India and sold successful the Indian home marketplace connected outgo of applicable duties connected the output.
SEZs person emerged arsenic an important contributor to India's exports. Total exports from these zones stood astatine $176.6 cardinal successful 2024-25.
