Exports from SEZ increased to $163.69 billion, UAE-US were big buyers

Exports from Special Economic Zones (SEZs) grew by more than 4% to $163.69 billion in 2023-24. At the same time, the country's total exports fell by more than 3% over the last fiscal year.

Exports from these zones totaled $157.24 billion in 2022-23 and $133 billion in 2021-22. SEZs are major export hubs, accounting for more than one-third of the country's total exports in the last fiscal year.

SEZs are areas that are considered foreign areas for trade and customs. Duty-free sales in the domestic market outside these zones are prohibited. The government has approved 423 such zones, of which 280 have become operational by March 31 this year.

As of December 31, 2023, there were 5,711 approved units in these zones. The highest number of operational SEZs are in states like Karnataka, Maharashtra, Telangana, Tamil Nadu, Andhra Pradesh, Gujarat, Kerala and Uttar Pradesh.

As of December 31, 2023, more than Rs 6.92 lakh crore had been invested in these zones, employing a total of 30.70 lakh people. At the same time, the majority of exports went to countries such as the UAE, the US, the UK, Australia, and Singapore.

Units in special economic zones can currently sell their products in the DTA (domestic tariff area) after paying the duty on finished goods. The SEZs established under the SEZ Act of 2005 and SEZ Rules of 2006 are primarily funded by private investors.

The Centre has not set up any SEZ in the country after the enactment of the SEZ Act of 2005. The country's merchandise exports declined by 3.11 percent to $437 billion in 2023-24. Imports also fell by more than eight percent to $677.24 billion.