Exports From SEZs Surge Over 4 Per Cent In FY24, Despite Fall In Overall Shipments

To help promote these zones, the authorities are considering measures such as easier approval processes for the units and flexible framework for sales of goods made in the SEZs in the domestic market

Exports from special economic zones (SEZs) climbed by more than 4 per cent to touch $163.69 billion in 2023-24, official data from the Ministry of Commerce revealed.

The surge in exports contrasted with the over 3 per cent decline in overall shipments of the country in the preceding fiscal year, reported PTI. Exports from the zones touched $157.24 billion in 2022-23 fiscal year (FY23) and $133 billion in the 2021-22 fiscal year (FY22). 

Notably, SEZs are special zones that receive the treatment of foreign territories for trade and customs duties. These zones also face restrictions on duty-free sales in the domestic market outside these zones. As of March 31, 2024, the government has approved 423 zones, out of which 280 remain operational.

In the last fiscal year, these zones account for more than one-third of the nation’s overall outbound shipments. As of December end, 2023, these zones included 5,711 approved units, official data revealed.

Major export destinations include the US, the UK, Australia, the United Arab Emirates, and Singapore. To help promote these zones, the authorities are considering several measures such as easier approval processes for the units, flexible framework for sales of goods manufactured in the SEZs in the domestic market, etc. 

Regarding the sales in the domestic market, the Global Trade Research Initiative (GTRI) earlier proposed to the government that these goods produced in the special zones should be allowed to be sold in the domestic market after payment of duty foregone on inputs to help boost value addition.

Currently, the units in these zones are permitted to sell their products in DTA after they pay duties on finished goods.

Notably, as of December end 2023, these zones include an investment of more than Rs 6.92 lakh crore, with 30.70 lakh people employed in these. Karnataka, Maharashtra, Tamil Nadu, Gujarat, Telangana, Andhra Pradesh, Kerala, and Uttar Pradesh house majority of the operational SEZs in the nation.