Home India Ministry of Commerce and Industry Parliament Question: Special Economic Zones...
Date: 2025-12-09 Category: Not Applicable State: Union Government Country: India

Parliament Question: Special Economic Zones

Issued by Ministry of Commerce and Industry · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document summarises the Indian government's response to an unstarred question regarding the performance of Special Economic Zones (SEZs) and measures taken to support them, particularly in light of US tariff pressures. The data included spans the last five years, up to December 1st, 2025. The response highlights government initiatives like the Export Promotion Mission, Credit Guarantee Scheme for Exporters, trade relief measures by the RBI, and leveraging Free Trade Agreements. **Key Points / Main Content** * **SEZ Performance Data:** * Detailed export, investment, and employment data for SEZs over the past five years (2020-21 to 2024-25), broken down by zone, is provided in Annexure-I. * The number of operational and closed SEZ units (zone-wise) as of 01.12.2025, and during the last five years is available in Annexure-II. * **Government Measures to Support SEZs (in response to US tariff pressure):** * The government is actively mitigating the impact of US tariffs via a multi-pronged approach, including engagement with the US government for a beneficial trade agreement. * RBI is providing trade relief measures for eligible affected exporters, including debt repayment moratoriums and export credit extensions. * The government continues to work on policy initiatives, including allowing "reverse job work" to enable SEZ units to serve the domestic market. * **Export Promotion Mission (EPM):** * The EPM is allocated Rs.25,060 crore for FY 2025-26 to FY 2030-31 to provide a comprehensive, flexible, and digitally-driven framework for export promotion. * It operates through two sub-schemes: NIRYAT PROTSAHAN (focused on trade finance for MSMEs) and NIRYAT DISHA (focused on non-financial enablers like market readiness, export quality, and logistics). * Priority support under EPM is given to sectors affected by recent global tariff escalations, such as textiles, leather, gems & jewellery, and engineering goods. * **Credit Guarantee Scheme for Exporters:** * Provides 100% credit guarantee coverage via NCGTC to Member Lending Institutions for extending additional collateral-free credit facilities up to Rs.20,000 crore to eligible exporters, including MSMEs. * **Leveraging Free Trade Agreements:** * The government aims to promote export diversification through 15 Free Trade Agreements (FTAs) and 6 Preferential Trade Agreements (PTAs) with its trading partners. * The government engages with stakeholders to ensure SEZs remain effective amidst evolving global conditions. **Impact Analysis** **Stakeholder**: SEZ Units * **Impact:** The measures and initiatives aim to mitigate the impact of US tariffs, improve access to finance, enhance market readiness, and allow them to serve the domestic market, which could improve business viability. * **Action Required:** To understand and utilise the support measures, Free Trade Agreements, and engage with the government on policy initiatives. **Stakeholder**: Exporters (including MSMEs) * **Impact:** Increased access to trade finance, collateral-free credit, trade relief measures, and support for export promotion, diversification, and enhanced competitiveness. * **Action Required:** Utilise credit guarantee schemes, understand the framework of EPM, and avail support for trade finance, export promotion, and compliance. **Stakeholder**: Government (Ministry of Commerce and Industry, RBI) * **Impact:** Responsible for implementing and monitoring the effectiveness of the various support measures and trade policies related to SEZs and export promotion. * **Action Required:** Continue engaging with stakeholders, refine existing measures, and introduce new policy initiatives to address challenges faced by SEZs.

Key Entities Referenced

Special Economic Zones (SEZs): The policy addresses issues related to exports, investment, employment, and challenges faced by SEZs in India, particularly in light of US tariff pressure and potential measures to allow SEZ units to serve the domestic market. Ministry of Commerce and Industry: The ministry responsible for answering questions related to Special Economic Zones (SEZs) and implementing policies related to commerce, exports, and trade. Export Promotion Mission: A comprehensive and digitally-driven framework for export promotion to address global trade challenges and support exporters. Credit Guarantee Scheme for Exporters: Scheme to provide credit guarantee coverage to facilitate collateral-free credit access to eligible exporters. Free Trade Agreements (FTAs): Government efforts to promote export diversification and work with stakeholders to utilize the benefits of FTAs with various trading partners.
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GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE LOK SABHA UNSTARRED QUESTION NO. 1542 ANSWERED ON 09/12/2025 SPECIAL ECONOMIC ZONES 1542. SHRI BASTIPATI NAGARAJU: SHRI B K PARTHASARATHI: Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased to state: (a) the details regarding the exports, investment and employment generated by SEZs in the country during the last five years, year and location-wise; (b) the list of operational SEZ units currently, and those exited or closed in the last five years; (c) whether the Government has taken any measures to support SEZs in light of challenges posed by US tariff pressure; (d) if so, the details thereof; and (e) the details regarding the policy being considered such as “reverse job work that would allow SEZ units to serve the domestic market? ANSWER वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA) (a): The details of Exports, Investment and Employment generated by the Special Economic Zones (SEZs) in the country during the last five years, year-wise and Zone-wise are at Annexure-I. (b): The Zone-wise number of operational units as on 01.12.2025 and number of closed units in the last five years are at Annexure-II. (c) & (d): The Government continues to work to mitigate the impact of the US tariff measures on Indian exports, including exports from SEZs, through a comprehensive multi-pronged strategy encompassing intensive engagement with the US Government for a mutually beneficial India-US Bilateral Trade Agreement, immediate relief through trade relief measures of RBI, Credit Guarantee Scheme for Exporters, enhancement of domestic demand through next generation GST reforms, Export Promotion measures such as the new Export Promotion Mission which provide support and assistance to our exporters, pursuing Free Trade Agreements (FTAs) with new partner countries and better utilization of the existing FTAs.Details of some of the aforementioned measures are as follows: 1. Export Promotion Mission The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs.25,060 crore for FY 2025– 26 to FY 2030–31. EPM marks a strategic shift from multiple fragmented schemes to a single, outcome-based, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs. The Mission will operate through two integrated sub-schemes: (i) NIRYAT PROTSAHAN – focuses on improving access to affordable trade finance for MSMEs through a range of instruments such as interest subvention, export factoring, collateral guarantees, credit cards for e-commerce exporters, and credit enhancement support for diversification into new markets. (ii) NIRYAT DISHA – focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international branding, packaging, and participation in trade fairs, export warehousing and logistics, inland transport reimbursements, and trade intelligence and capacity-building initiatives. The Mission is designed to directly address structural challenges that constrain Indian exports, including: • limited and expensive trade finance access, • high cost of compliance with international export standards, • inadequate export branding and fragmented market access, and • logistical disadvantages for exporters in interior and low-export-intensity regions. Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products. The interventions will help sustain export orders, protect jobs, and support diversification into new geographies. 2. Credit Guarantee Scheme for Exporters has also been approved to provide 100% credit guarantee coverage by National Credit Guarantee Trustee Company Limited (NCGTC) to Member Lending Institutions (MLIs) for extending additional collateral free credit facilities up to Rs.20,000 crore to eligible exporters, including MSMEs. The Scheme is expected to enhance the global competitiveness of Indian exporters and support diversification into new and emerging markets. Enabling collateral-free credit access will strengthen liquidity, ensure smooth business operations, and reinforce India’s progress towards achieving the USD 1 trillion export target. 3. Trade Relief Measures :-The Reserve Bank of India (RBI) has also initiated trade relief measures for eligible affected exporters including provision for debt repayment moratorium and extension of tenor for export credit.4. Leveraging Free Trade Agreements:- The Government aims for promotion of Export Diversification and has signed 15 Free Trade Agreements (FTAs) and 6 Preferential Trade Agreements (PTAs) with its trading partners. Government is working with all stakeholders to enable our exporters to better utilize the benefits of India’s FTAs with major markets such as Japan, Korea, UAE etc. and effectively utilize the opportunities that have been created with the recent concluded FTAs such as with the EFTA countries and the UK. The Government is also engaged in negotiations for early conclusion of mutually beneficial FTAs with the EU, Peru, Chile, New Zealand, Oman etc. The Government remains engaged with all stakeholders—including exporters, Export Promotion Councils (EPCs), industry associations, and state governments—to assess the evolving impact of the U.S. tariff measures. (e) With a view to ensure the effectiveness of SEZs amidst evolving global trade conditions, the Government undertakes various measures from time to time to remove operational challenges in SEZs in consultation with different stakeholders. Such measures including policy initiatives like permitting reverse job work and regulatory adjustments are continuous process and introduced in the administration of SEZs as and when needed.Annexure-I as mentioned in Part (a) in answer to the Lok Sabha Unstarred Question No. 1542 for 9th December, 2025 Zone-wise details of Exports from SEZs during the last 5 years (Rs. in Crore) Sl. No. Name of the 2020-21 2021-22 2022-23 2023-24 2024-25 Zone 1 CSEZ, Cochin 151389 189284 240274 254726 277639 2 FSEZ, Falta 31725 48536 50658 64475 68371 3 KASEZ, Kandla 137229 239190 335836 310283 332892 MEPZ SEZ, 116844 136329 172580 177930 203304 4 Chennai 5 NSEZ, Noida 70740 80804 96649 113978 128266 SEEPZ SEZ, 138789 160052 186787 210756 224251 6 Mumbai VSEZ, 112808 136553 180794 223071 228948 7 Visakhapatnam Total 759524 990747 1263578 1355220 1463669 Zone-wise details of Investment in SEZs during the last 5 years (Rs. in Crore) Sl. Name of the 2020- 2021- 2022- 2023- 2024-25 No. Zone 21 22 23 24 1 CSEZ 121523 123102 124634 125179 126796 2 FSEZ 26385 27410 27410 41031 44026 3 KASEZ 208067 219565 223398 209204 265120 4 MEPZ SEZ 66157 64903 54908 77439 72041 5 NSEZ 47368 49949 54134 61430 62942 6 SEEPZ SEZ 72532 75571 79718 88520 90301 7 VSEZ 75467 89205 95983 104538 120964 Total 617499 649705 660184 707342 782192 Note: Calculated on cumulative basis. Zone-wise details of Employment in SEZs during the last 5 years (In No. of Persons) Sl. No. Name of the Zone 2020-21 2021-22 2022-23 2023-24 2024-25 1 CSEZ 454184 481220 487716 513686 513821 2 FSEZ 81638 94245 87093 99783 104503 3 KASEZ 96689 105922 112899 126658 174545 4 MEPZ SEZ 479674 523807 591517 728493 607812 5 NSEZ 338337 385240 447129 471560 526539 6 SEEPZ SEZ 474690 560052 589971 635373 643898 7 VSEZ 432924 545694 579287 618551 606775 Total 2358136 2696180 2895612 3194104 3177893 Note: Calculated on cumulative basis.Annexure-II as mentioned in Part (b) in answer to the Lok Sabha Unstarred Question No. 1542 for 9th December, 2025 Zone-wise number of operational units as on 01.12.2025 Name of the Zone Number of Units Cochin SEZ (CSEZ) 1227 Falta SEZ (FSEZ) 98 Kandla SEZ (KASEZ) 1201 Madras Export Processing Zone SEZ (MEPZ SEZ) 753 Noida SEZ (NSEZ) 751 Santacruz Electronics Export Processing Zone SEZ (SEEPZ SEZ) 704 Visakhapatnam SEZ (VSEZ) 547 Total 5281 Zone-wise and year-wise number of closed units during the last 5 years Financial CSEZ FSEZ KASEZ MEPZ NSEZ SEEPZ VSEZ Total Year 2020-21 13 2 16 7 10 23 25 96 2021-22 30 4 13 7 17 22 20 113 2022-23 11 4 16 12 4 13 17 77 2023-24 22 5 12 15 5 11 10 80 2024-25 20 2 12 19 2 12 33 100 Total 96 17 69 60 38 81 105 466 *****

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