Home / Business and Economy / India SEZs Demand Fair Trade Access: Level Playing Field with China?
India SEZs Demand Fair Trade Access: Level Playing Field with China?
15 Mar
Summary
- SEZs urge government to allow domestic sales at zero/concessional duties.
- Current rules impose full customs duties on SEZ goods for Indian market.
- This change aims to encourage local manufacturing and remove disadvantages.
Indian Special Economic Zones (SEZs) are urging the government to allow goods manufactured within these zones to be sold in the domestic market at zero or concessional duties. This request mirrors the favorable duty rates currently enjoyed by goods imported from China and Free Trade Agreement (FTA) partner countries.
The core issue highlighted by the industry is the unequal access for SEZ products in the Indian market. Global investors operating manufacturing units in Indian SEZs are subjected to full customs duties on their supplies to the domestic market. This contrasts sharply with the zero or concessional duty rates applicable for importing similar items from foreign countries, including from the investors' own overseas factories.
The proposed change aims to rectify this imbalance, fostering a more competitive environment for local manufacturing. By enabling SEZ units to sell domestically at comparable duty rates to imports, the industry believes it will encourage further investment and production within India, while simultaneously removing inherent disadvantages currently faced by these zones.
