Archive · 20 Jan 2026
Government Considers SEZ and Electronics Reforms in Budget 2026-27
The Indian government is thinking about making big changes to Special Economic Zones (SEZs) and the electronics industry in the upcoming budget.
These changes are meant to help factories and businesses sell more things both to other countries and to people in India.
For SEZs, the government wants to make it easier for them to sell things in India and get paid in Indian money.
For the electronics industry, manufacturers want the government to lower taxes on important parts and make some rules easier.
This is important because the US has put high taxes on some Indian products, and the government wants to help Indian businesses grow and create more jobs.
There are over 276 SEZs in India, and they employ a lot of people.
The electronics industry also wants to make sure that Indian-made phones and other devices are more competitive and support deeper localization.
Government considering SEZ reforms in Budget 2026-27 to boost manufacturing competitiveness and domestic sales.
Proposed SEZ flexibilities include easier domestic market access, reverse job-work, and INR payments for services.
Electronics manufacturers push for custom duty rationalization, lower duties on key components, and MOOWR scheme reforms.
ICEA proposes lowering customs duty on mobile components, wearables, and hearables to reduce costs and improve competitiveness.
Government and industry aim to mitigate effects of US tariffs and leverage domestic market for exporters.
- Who
- Indian Government and Electronics Manufacturers (ICEA)
- What
- Considering SEZ and electronics industry reforms in Budget 2026-27
- When
- Budget 2026-27
- Where
- India
- Why
- To boost manufacturing competitiveness, reduce costs, and improve ease of doing business amid global uncertainties and US tariffs
Government and Industry
None
SEZ Reforms
Government and Industry
Government proposes reforms to boost manufacturing competitiveness and domestic sales, including easier market access and INR payments for services.
None
None
Electronics Industry Reforms
Government and Industry
Electronics manufacturers push for custom duty rationalization, lower duties on key components, and MOOWR scheme reforms to reduce costs and improve competitiveness.
None
None
- Number of Operational SEZs
- 276
- SEZ Employment
- 3,194,104 persons
- Exports from SEZs in 2024-25
- $ (up 7.37% from previous fiscal)
- Proposed SEZ Flexibilities
- Easier domestic market access, reverse job-work, INR payments for services
- US Tariffs Impact
- 50% tariffs on most Indian exports
- Proposed Duty Cuts on Mobile Components
- From 15% to 10%
- Proposed Duty Cuts on Wearables and Hearables
- From 20% to 15%
- Proposed Duty on Display Inputs
- Zero duty
