Duty relief for SEZ units now allows limited domestic sales, designed to help firms hit by weak global demand while keeping export focus intact. Experts say the policy can provide a financial cushion for capacity utilization and revenue, particularly for sectors like electronics and textiles that are sensitive to demand swings.
From April 2026 to March 2027, India will allow export zones to sell products locally. The move is designed to help exporters cope with rising tariffs and supply-chain disruptions tied to the Middle East conflict, while improving use of SEZ capacity and reducing dependence on expensive imports. The policy could shift how firms balance export orders with domestic sales.
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