Ajay Bhadoo, Additional Secretary in the Union Ministry of Commerce and Industry, said the Central government approves SEZs in India on the basis of industry demand and proposals submitted by states, and not merely to meet government targets.

“New SEZs are being established across different states in the country, but increasing the number of SEZs is not the government's target. SEZs are demand-driven,” Bhadoo said, speaking informally during an event marking 12 years of achievements in SEZs.

“If a state wants to set up an SEZ, it identifies land, assesses industry requirements, obtains the necessary clearances, and the Centre notifies the zone. Recently, zones in the semiconductor sector have also been granted approval.”

According to Ministry data, in the last two decades, a total of 425 proposals were received for approval under the SEZ Act, 2005, of which 368 were notified. This implies that 57 zones across various states have either been de-notified or their approvals withdrawn. These states include Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Gujarat, Haryana, Rajasthan, West Bengal, Odisha, Kerala and Uttar Pradesh.

Reforms For SEZs

Referring to ongoing reforms aimed at strengthening the SEZ ecosystem, Bhadoo said the government has introduced changes in land requirements. Earlier, 50 hectares of land were mandatory, but the norms have been relaxed for electronics and semiconductor sectors. Certain provisions are being customised, he said. 

Efforts are underway to ensure quicker resolution of industry demands and issues. Several government schemes are also under review.

Responding to a question on the closure of SEZs, he said even if an SEZ shuts down, it does not affect the country's exports because exports continue through other domestic channels. 

Policy reforms, digital governance, ease of doing business, and increasing integration with the global economy have helped India establish a strong position in global trade.

Bhadoo said India's total exports have risen from US$ 441 billion to US$ 863 billion over the last decade, of which Gujarat contributes US$ 110 billion. Asked which sectors were driving exports, he said engineering, petrochemicals, electronics, gems and jewellery, and chemicals account for a significant share.

Free Trade Agreements 

On Free Trade Agreements (FTAs), Bhadoo said Gujarat had taken a historic initiative by establishing Free Trade Zones (FTZs) in 1965. At that time, it was a pioneering model not only for India but for the whole of Asia. 

With greater integration into global markets through FTAs, exports of Indian products are expected to rise further. India has signed FTAs with Mauritius, the UAE, Australia, and the United Kingdom, opening access to new markets. Discussions are also underway with the European Union and New Zealand, which will provide additional opportunities to Indian exporters.

According to data released by the Ministry of Commerce and Industry on February 28, 2026, India had 368 SEZs. With approvals granted to new semiconductor projects and others, the number has increased to 370. 

Goods manufactured in SEZs cannot be sold freely in the Domestic Tariff Area (DTA). Such sales generally attract customs duty equivalent to imports, IGST, and other applicable taxes. However, certain categories may enjoy exemptions or special conditions under policy provisions.

Gujarat Sends 21% Of SEZ Exports

Gujarat has a significant share in India’s SEZ exports.

Gyaneshwar B. Patil, the Zonal Development Commissioner of Gujarat SEZs and Export Oriented Units (EOUs), told media representatives that SEZs have opened doors for investment, employment, innovation, and exports. 

Exports from Gujarat's SEZs increased from ₹1,79,808 crore in 2014-15 to ₹3,00,793 crore in 2025-26, reflecting a growth of nearly 67%. The state currently contributes around 21% of the country's total SEZ exports. 

Four semiconductor SEZs — CG Semi Technologies, Kaynes Semicon, Tata Semiconductor Manufacturing and Micron Technology — have been approved in the state.