Perspective on Union Budget 2026: SEZ Reforms and Domestic Integration

Our Managing Partner, Mr. Hitender Mehta, shared his views on the SEZ-related announcements made in the Union Budget 2026 by the Hon’ble Finance Minister, Nirmala Sitharaman. The announcements mark a significant and much-awaited step towards integrating Special Economic Zones (SEZs) with the domestic economy.

After a prolonged period of policy inertia, the Union Budget signals a decisive shift in the approach to SEZs by promoting closer alignment with the Domestic Tariff Area (DTA). A key highlight is the provision allowing supplies from SEZ units to the domestic market at concessional customs duty rates, addressing a long-standing demand of the industry.

This reform is expected to enhance operational flexibility for SEZ units, improve domestic market access, and contribute to a more balanced and efficient trade ecosystem. It also reflects a broader policy intent to rationalize regulatory frameworks and promote ease of doing business in India.

Mr. Hitender Mehta emphasized that these measures could play a pivotal role in revitalizing the SEZ ecosystem, strengthening its linkages with the domestic economy, and unlocking new growth opportunities for industry stakeholders.

This development aligns with ongoing efforts by ASSOCHAM and other industry bodies to advocate for pragmatic and growth-oriented reforms in India’s trade and industrial policy framework.