Union Budget 2026: Government to permit sale of goods from SEZs in domestic market

NEW DELHI: Amid trade tensions, Union finance minister Nirmala Sitharaman on Sunday sought to address a long pending demand of the commerce department by allowing the sale of goods by eligible manufacturers in special economic zones (SEZs) to domestic tariff area on payment of duty at concessional rates.

Sitharaman said that only a prescribed share of production can be sold in the Indian market outside SEZs at lower rates instead of paying the specified import duty.




Commerce minister Piyush Goyal said that the move will help in reducing the imports from overseas as several units have spare capacity, leading to availability of these goods at competitive prices in the country. “We will keep in mind that domestic industry should not suffer from this… we may keep some sectors out of this such as oil refineries,” Goyal told a news agency. The norms are expected to be announced over the next month or two.

In 2024-25, oil accounted for nearly 40% of the goods exported from these zones with Reliance’s Jamnagar being the source. It was followed by engineering (19%) and gems and jewellery. Last year, goods exports from SEZs were pegged at $69 billion. “The relief to SEZ units for limited access to the domestic market will enable units to achieve economies of scale and help in import substitution,” said commerce secretary Rajesh Agrawal.