Budget 2026-27: Big changes coming for SEZs
Business
India's next Budget (out February 1) is set to shake up how Special Economic Zones (SEZs) work, aiming to make local manufacturing stronger amid a widening trade deficit.
Some of the ideas on the table—like easier rules for sub-contracting, tax breaks on value addition, and a customs amnesty—come from Deloitte India's recommendations.
Why should you care?
These SEZ reforms are part of a bigger plan to tweak customs duties—making it cheaper to import parts but pricier to bring in finished goods.
The hope? More "Made in India" products and fewer imports.
With exports from SEZ units in 2024-25 up 7.37% from the previous fiscal, these moves are designed to help Indian businesses compete globally and strengthen domestic manufacturing and export competitiveness.