New Delhi | RBN News
Union Finance Minister Nirmala Sitharaman on Saturday announced a special, one-time measure in the Union Budget 2026–27 aimed at providing operational flexibility to manufacturing units operating in Special Economic Zones (SEZs).
Presenting the Budget in Parliament, the Finance Minister said the government proposes to allow eligible SEZ manufacturing units to sell goods in the Domestic Tariff Area (DTA) at concessional customs duty rates. The initiative is intended to support SEZ units facing changing global trade conditions and demand patterns.
However, to maintain the export-oriented character of SEZs, the government has clarified that such domestic sales will be restricted to a prescribed proportion of the unit’s total exports. This safeguard is designed to prevent excessive diversion of production to the domestic market while still offering temporary relief to exporters.
Industry experts believe the proposal could help SEZ-based manufacturers improve capacity utilisation, manage inventories more efficiently, and maintain cash flows, especially in sectors affected by global economic uncertainty.
The announcement reflects the government’s broader approach in the Union Budget 2026–27 to balance export promotion with pragmatic policy support for domestic manufacturing, while ensuring that SEZ incentives remain aligned with their original objectives.
