Special Economic Zones Exports Rose To $163.7-Billion In FY24
SEZs played a significant role in India's export landscape, contributing more than one-third of the country's total outbound shipments in the last fiscal.
Exports from special economic zones grew over 4% to $163.7 billion in fiscal 2024, despite a 3% decline in the country's overall exports. In fiscal 2023, SEZ exports totaled $157.24 billion, while they stood at $133 billion in fiscal 2022, according to data from commerce ministry.
During the same period, India's merchandise exports decreased by 3.11% to $437 billion, while imports saw a decline of over 8% to $677.24 billion. SEZs played a significant role in India's export landscape, contributing more than one-third of the country's total outbound shipments in the last fiscal.
SEZs are designated areas treated as foreign territories for trade and customs duties, with restrictions on duty-free sales outside these zones in the domestic market. The government has approved a total of 423 SEZs, out of which 280 are operational as of March 31. Additionally, there are 5,711 approved units in these zones as of Dec. 31, 2023.
States such as Karnataka, Maharashtra, Telangana, Tamil Nadu, Andhra Pradesh, Gujarat, Kerala, and Uttar Pradesh host the highest number of operational SEZs. As of Dec. 31, 2023, these zones have attracted investments totaling over Rs 6.92 lakh crore and employ approximately 30.70 lakh people.
Major export destinations for SEZs include the United Arab Emirates, the US, the UK, Australia, and Singapore.
To give a push to these zones, the government is considering several measures such as a flexible framework for the sale of products manufactured in SEZs in the domestic market, and streamlining approval processes for units.
In a report, think tank Global Trade Research Initiative suggested the government allow the sale of products manufactured in SEZs in the domestic market on payment of duty foregone on inputs as that would help promote value addition.
At present, units in SEZs are allowed to sell their products in DTA on payment of duties on an output basis (finished goods). SEZs being set up under the SEZ Act, 2005 and SEZ Rule, 2006 are primarily private investment driven. Post enactment of SEZ Act, 2005 the Centre has not set up any SEZ in the country.
(With inputs from PTI)
