India’s 2026 budget lets some SEZ factories sell goods domestically at lower customs duties to boost underused capacity.

India’s 2026 budget introduces a one-time measure allowing eligible SEZ manufacturing units to sell goods in the domestic market at reduced customs duty rates, aiming to boost underutilized capacity amid global trade challenges. The policy, limited to a set share of exports, permits duty payments based on input values rather than full finished goods tariffs. The government plans regulatory changes to ensure fairness for domestic manufacturers. SEZ exports reached $176.6 billion in 2024–25. Specific eligibility rules, duty rates, and caps remain pending.