BS EDIT: Special zones: SEZ policy needs reform

By Business StandardPublished On Jun 10, 2025

New SEZ rules

Land rules eased and sourcing norms relaxed to promote hi-tech manufacturing

Potential for semiconductors

SEZs offer needed resources, but India’s model lags behind China’s success

Low employment, exports

SEZs employ 3 million and make up 20% of exports, less than China’s 60%

Land and infrastructure issues

Acquisition problems and poor infrastructure delay SEZ growth

Policy and coordination gaps

Conflicting policies and delays hinder progress; DESH Bill shelved

Need integrated development

SEZs must offer world-class connectivity and services like China’s zones

Fix structural issues

Focus on core investment barriers, not frequent policy changes, for SEZ success