INFRASTRUCTURE

95 of 372 SEZs non-operational due to approval delays, global uncertainty

As many as 277 special economic zones (SEZs) are operational and 95 non-operational in the country as on July 31 this year, the Parliament was informed on Tuesday.
In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said that 372 of the 436 such approved zones are notified.
According to the data provided by the minister, the maximum number of non-operational zones is in Haryana at 14.
It is followed by Telangana (12), Karnataka (11) and nine each in Tamil Nadu and Uttar Pradesh.
He said that the time taken in operationalising SEZs could be due to reasons such as time taken for getting approvals from the statutory or State government bodies, adverse business climate due to shifts in the global economic scenario and changes in fiscal incentives.
He also informed that exports from these zones stood at Rs 16.4 lakh crore in 2025-26, an increase from Rs 14.63 lakh crore in 2024-25.
It was Rs 13.55 lakh crore in 2023-24 and Rs 12.63 lakh crore in 2022-23.
SEZs are set up under the SEZ Act, 2005, and SEZ Rules, 2006.
They are primarily private investment-driven initiatives.
An SEZ may be set up either jointly or severally by the Central government, State government or any person for manufacture of goods or rendering services or for both or as a free trade warehousing zone.

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