New Delhi: Proposed amendments to the Special Economic Zone (SEZ) law are expected to be included in the commerce ministry's 100-day agenda for the next government and may be introduced in the monsoon session of Parliament. Sources said.
The monsoon session will be the first session of the newly elected government in which the full budget for 2024-25 will also be presented.
The seven-phase Lok Sabha elections, the world's largest electoral process, will begin on April 19 and counting of votes will take place on June 4.
He said the government is considering several measures such as a flexible framework for selling products manufactured in SEZs in the domestic market, streamlining of approval processes for units.It aims to help revive SEZs and facilitate trade transactions between the SEZ and the Domestic Tariff Area (DTA) or domestic market.
SEZs are enclaves that are treated as overseas zones for customs and trade, with restrictions on duty free sales outside these zones in the domestic market.
The commerce ministry had earlier held an inter-ministerial meeting on the proposals.
Last year, Commerce and Industry Minister Piyush Goyal had said that the government was considering relaxing some restrictions for units to boost the growth of the SEZ sector.
Think tank Global Trade Research Initiative (GTRI) in a report has suggested that the government allow products manufactured in SEZs to be sold in the domestic market or payment of foregone duty on inputs, as this would help boost value addition.At present, units in SEZs are permitted to sell their products in DTAs on payment of duty on output basis (finished goods).
GTRI co-founder Ajay Srivastava had said the government already allows DT sales on payment of foregone duty on input basis to firms operating under the Manufacturing and Other Operations in Warehouse Regulation (MOWRR) scheme.
Srivastava had said, "For parity, the government can give similar concessions to SEZs. This will encourage value addition within SEZs, as in most cases, the tariff on finished products is higher than that on inputs."
SEZs have emerged as a significant contributor to India's exports.Total exports from these sectors in 2022-23 stood at US$ 155.8 billion. These include goods exports worth US$61. billion and services exports worth US$94.2 billion.
The monsoon session will be the first session of the newly elected government in which the full budget for 2024-25 will also be presented.
The seven-phase Lok Sabha elections, the world's largest electoral process, will begin on April 19 and counting of votes will take place on June 4.
He said the government is considering several measures such as a flexible framework for selling products manufactured in SEZs in the domestic market, streamlining of approval processes for units.It aims to help revive SEZs and facilitate trade transactions between the SEZ and the Domestic Tariff Area (DTA) or domestic market.
SEZs are enclaves that are treated as overseas zones for customs and trade, with restrictions on duty free sales outside these zones in the domestic market.
The commerce ministry had earlier held an inter-ministerial meeting on the proposals.
Last year, Commerce and Industry Minister Piyush Goyal had said that the government was considering relaxing some restrictions for units to boost the growth of the SEZ sector.
Think tank Global Trade Research Initiative (GTRI) in a report has suggested that the government allow products manufactured in SEZs to be sold in the domestic market or payment of foregone duty on inputs, as this would help boost value addition.At present, units in SEZs are permitted to sell their products in DTAs on payment of duty on output basis (finished goods).
GTRI co-founder Ajay Srivastava had said the government already allows DT sales on payment of foregone duty on input basis to firms operating under the Manufacturing and Other Operations in Warehouse Regulation (MOWRR) scheme.
Srivastava had said, "For parity, the government can give similar concessions to SEZs. This will encourage value addition within SEZs, as in most cases, the tariff on finished products is higher than that on inputs."
SEZs have emerged as a significant contributor to India's exports.Total exports from these sectors in 2022-23 stood at US$ 155.8 billion. These include goods exports worth US$61. billion and services exports worth US$94.2 billion.
