Government Plans to Ease SEZ Rules to Attract New-Age Sectors

To make Special Economic Zones (SEZs) more appealing to investors, the Indian government is planning to relax rules for high-potential sectors such as green hydrogen, air cargo, maintenance, repair & overhaul (MROs), and space exploration, according to news reports from the Hindu Businessline.

This move comes after recent rule changes for the semiconductor and electronics component sectors, which have already helped attract major investment projects.

Why is the Government Changing SEZ Rules?

There is currently a lot of unused land and capacity in existing SEZs. To boost activity, the government aims to attract emerging industries by updating SEZ rules to meet their unique requirements.

These updates will differ for each sector. For instance, green hydrogen producers may be allowed to sell power outside SEZs, a major change from current restrictions. Also, the requirement for land contiguity may be relaxed, since green hydrogen production often involves scattered wind turbines, making it difficult to have continuous land holdings.

Changes in SEZ Rules May Support Aircraft Leasing

In the air cargo sector, changes may include support for aircraft leasing and related services. These steps aim to turn SEZs into hubs for aviation-related businesses, giving a boost to air logistics and infrastructure.

Success of SEZ Relaxations for Electronics Sector

Earlier this month, the government relaxed SEZ rules for semiconductors and electronics. These included:

• Easier Net Foreign Exchange (NFE) calculations
• Permission to supply to domestic markets after duty payment
• Removal of the rule that SEZ land must be completely encumbrance-free

These reforms helped greenlight key projects such as Micron Semiconductor’s plant in Gujarat and a durables cluster in Karnataka.

Making SEZ Policy More Flexible

Due to delays in formally amending the SEZ Act, the Commerce Department is currently making necessary changes through notifications. This allows quicker, sector-specific policy updates while a broader reform is still in progress.

Read more: Upcoming Dividends in July 2025: Nestle India, Biocon, BHEL, TCS, Bharti Airtel & More.

Conclusion

The government’s efforts to customise SEZ rules for each sector show a clear focus on encouraging investments in future-ready industries. These changes can help turn SEZs into strong growth engines for India’s economy.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.