Exports from operational special economic zones (SEZs) totalled Rs 11.70 trillion (tn) in 2025-26 until December, marking a 32.02 per cent increase from 2024, the government said. The rise reflected strong growth in both investment and employment across zones and underscored the role of SEZs as key drivers of trade and industrial expansion. Policy measures were proposed to improve domestic sales, enhance efficiency and strengthen the SEZ framework to sustain momentum. As of the end of February there were 368 notified SEZs and total investment in those areas stood at Rs 7.86 trillion (tn), the statement added. SEZs employed three point one seven three million (mn) people as of December 2025. The Union Budget 2026-27 proposed a special one-time measure to permit eligible SEZ manufacturing units to sell a prescribed proportion of output in the domestic tariff area at concessional duty rates, with such sales limited to a specified share of exports. Necessary regulatory amendments will be undertaken to operationalise the provision while ensuring a level playing field for units operating in the domestic tariff area, the government indicated. The move aims to improve capacity utilisation, achieve economies of scale, reduce export costs and enhance the overall resilience of the SEZ ecosystem. Extension of tax incentives for cloud and data-centre operations within SEZs is expected to attract global manufacturers and technology firms, further strengthening the country's investment ecosystem. By offering fiscal incentives, streamlined regulatory processes and modern infrastructure, SEZs have enhanced India’s global competitiveness and facilitated the growth of specialised industrial clusters. Since the enactment of the SEZ Act in May 2005 these zones have accelerated export growth while fostering industrial expansion across sectors and contributing to local economic development through direct and indirect employment and the emergence of new business ecosystems. In June 2025 the government notified two new SEZs at Sanand in Gujarat and Dharwad in Karnataka for the manufacturing of semiconductors and electronic components respectively.