The committee adopts a whole-of-government approach, bringing together representatives from key ministries, regulatory bodies, and SEZ administration. It includes representatives from DOC, DPIIT, NITI Aayog, CBIC, DEA, DGEP and Development Commissioners of SEZs.

The committee will review the effectiveness of the SEZ framework under the SEZ Act, 2005, assessing its impact on exports, investment, employment, and technology development, while identifying gaps and drawing on global best practices. It will also work toward harmonising SEZs with other export promotion schemes to reduce overlaps and improve policy coherence. In addition, it will also review fiscal and non-fiscal issues being faced by stakeholders for a more competitive and future-ready SEZ 2.0 framework.

Why SEZ 2.0 Matters Now

The current SEZ framework, governed by the Special Economic Zones Act, 2005, has played a pivotal role in positioning India as a global services export powerhouse. IT and IT-enabled services (IT/ITES) companies have been leveraging SEZs to scale exports, generate employment, and attract global investments.

However, over time, several challenges have emerged including rigid operational structures in a rapidly digitising economy, misalignment with newer trade facilitation schemes, increased compliance complexity, etc.

With the phasing out of earlier tax holiday schemes, SEZs have an opportunity to build on their existing strengths and complement them with a broader set of enablers, including regulatory flexibility, operational ease, and where appropriate, new fiscal measures. The priority is to ensure that the SEZ framework remains aligned with the evolving needs of IT-ITES exporters, who face a highly competitive global market and rapidly changing client demands.

The committee's Terms of Reference spanning policy harmonisation, incentive structures, Domestic Tariff Area (DTA) sales, and operational flexibility reflect an understanding of these evolving realities.

Building on Nasscom's Policy Advocacy

The formation of this Committee is a welcome step and aligns closely with Nasscom's sustained policy engagement on SEZ reforms for past many years, including enabling Hybrid Working Model, movement of assets, tax benefits, etc. This was to ensure that the SEZ framework remains aligned with the evolving needs of IT-ITES exporters, who face a highly competitive global market and rapidly changing client demands. Recently, Nasccom submitted a detailed paper on SEZ reforms: enhancing India's competitiveness in IT-ITES exports. It consolidated key recommendations aimed at reducing compliance frictions, simplifying operational procedures, and enhancing the attractiveness of SEZs to enable regulatory flexibility and operational ease.

SEZ 2.0 is an opportunity to redefine how India enables exports in a digital-first world. By addressing legacy constraints and embracing flexibility, the new framework can strengthen India's position as a global technology and services hub. For the IT industry, the path forward lies in co-creating a policy ecosystem that is flexible yet robust, simplified yet globally competitive and future-ready yet grounded in India's growth ambitions

As the committee progresses toward its recommendations, continued engagement between policymakers and industry stakeholders will be essential to ensure that SEZ 2.0 delivers on its full potential.

To be prepared for this interaction, we are rolling out a survey on SEZ issues. This survey is intended to gather structured evidence from the IT and ITES industry, including GCCs, on where the current framework creates friction in day-to-day operations, growth, reconfiguration and future investment. The objective is to help Nasscom develop a credible, evidence-based submission backed by comparable data, quantified business impact and practical reform suggestions.

In case you are operating from SEZ and are interested in providing your inputs, please fill the Survey here (latest by April 17, 2026): Survey Link

Director - Public Policy