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WHY HAVE SPECIAL ECONOMIC ZONES RULES BEEN RELAXED?

India relaxed SEZ rules to boost domestic semiconductor and electronics production, reducing land requirements from 50 to 10 hectares, easing encumbrance rules, and allowing domestic sales. These changes, effective June 2025, aim to reduce import reliance. Semiconductors are vital for digital devices, and two new SEZs worth ₹13,100 crore were approved.

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Context:

The Ministry of Commerce and Industry relaxed key provisions of the Special Economic Zones (SEZ) Rules 2006, to accelerate domestic manufacturing, particularly in the semiconductor sectors.

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