Government Forms 17-Member Panel to Draft SEZ 2.0 Policy Reforms

The government has initiated a review of India’s Special Economic Zones framework by setting up a committee tasked with recommending structural reforms to modernise the policy environment for export-led growth, as per PTI reports. 

Committee to Prepare SEZ 2.0 Reform Roadmap 

A 17-member panel has been constituted to develop a concept paper outlining a roadmap for comprehensive reforms aimed at shaping a new SEZ 2.0 policy. 

The panel includes representatives from key government bodies such as the commerce department, customs authorities, NITI Aayog, the Department for Promotion of Industry and Internal Trade (DPIIT), and the Central Board of Indirect Taxes and Customs (CBIC). 

Review of Existing SEZ Framework 

The committee will study the functioning of the Special Economic Zones Act, 2005, assessing how effective the framework remains in the current global trade environment, investment climate, and macroeconomic conditions. 

As part of the review, the panel will also examine ways to align SEZ policies with other export promotion mechanisms to reduce policy overlaps and improve operational efficiency. 

Integration With Export Promotion Schemes 

The study will analyse how SEZ policy can be harmonised with other export promotion initiatives such as Export Oriented Units (EOUs), Manufacturing and Other Operations in Warehouse Regulations (MOOWR), Advance Authorisation, Export Promotion Capital Goods (EPCG), and Duty Free Import Authorisation (DFIA). 

The committee will also evaluate how recent and proposed policy measures, including provisions related to Domestic Tariff Area (DTA) sales, fiscal and non-fiscal incentives, compliance requirements and operational flexibility, influence exports, investment flows, employment generation and ease of doing business. 

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Conclusion 

The panel will also examine operational and regulatory challenges faced by SEZ developers and units, including issues related to customs procedures, taxation, compliance burdens, infrastructure and coordination among stakeholders. 

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