India’s Special Economic Zones (SEZs) have posted robust growth in exports, investments and employment over the past five years, even as a significant number of units exited operations during the same period. The information was shared in the Lok Sabha on December 9, 2025, through Unstarred Question No. 1542, answered by Minister of State for Commerce and Industry, Shri Jitin Prasada.
According to the data placed before Parliament, exports from the seven central government–managed SEZs rose from ₹7.59 lakh crore in 2020–21 to ₹14.63 lakh crore in 2024–25. This reflects a near doubling in outward shipments despite global uncertainties and rising protectionist measures in key markets. Zones such as SEEPZ Mumbai, Kandla SEZ and Visakhapatnam SEZ remained among the top contributors. CSEZ Cochin also reported consistent annual improvement in export volumes, climbing from ₹1.51 lakh crore to ₹2.77 lakh crore over the same period.
Investments in SEZs also witnessed steady expansion. Cumulative investment rose from ₹6.17 lakh crore in 2020–21 to ₹7.82 lakh crore in 2024–25. Kandla SEZ saw a notable rise in investment commitments, crossing ₹2.65 lakh crore in the latest financial year, while Visakhapatnam SEZ also registered strong growth, with its cumulative investments reaching over ₹1.20 lakh crore. Other zones such as SEEPZ Mumbai and NSEZ Noida continued to record progressive but moderate investment inflows.
Employment generated by SEZs grew from 23.58 lakh persons in 2020–21 to 31.94 lakh persons in 2023–24, before experiencing a slight correction to 31.77 lakh in 2024–25. Several zones, including MEPZ Chennai and Kandla SEZ, showed substantial expansion in their workforce numbers over the five-year period, though some moderation was observed in the most recent year.
The response also highlighted that while SEZs have expanded their economic footprint, they have simultaneously witnessed a considerable churn. A total of 466 units closed or exited across Indian SEZs between 2020–21 and 2024–25. Visakhapatnam SEZ reported the highest number of closures, followed by SEEPZ Mumbai and Kandla SEZ. As of December 1, 2025, a total of 5,281 units remain operational across the major government-run SEZs.
The Government addressed concerns regarding the impact of U.S. tariff pressures on Indian exports. Shri Prasada informed the House that a multi-pronged strategy is in place to mitigate risks. This includes continued engagement with the U.S. administration for a mutually beneficial trade agreement, immediate relief through policy interventions by the Reserve Bank of India and the implementation of the Credit Guarantee Scheme for Exporters. The Government is also in the process of advancing a series of Free Trade Agreements with several countries and regions, while simultaneously ensuring better utilization of existing FTAs.
A major reform highlighted in the response is the newly launched Export Promotion Mission (EPM), with an outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31. The mission aims to replace fragmented export schemes with a unified support mechanism that can respond swiftly to shifting global trade dynamics. It is designed to improve access to affordable trade finance, strengthen export readiness, enhance branding capabilities, support compliance with global standards and reduce logistical disadvantages faced by exporters in the interior regions of the country. Sectors such as textiles, leather, engineering goods, gems and jewellery and marine products, which have faced tariff-driven stress in global markets, will receive priority support under the mission.
In addition, the Credit Guarantee Scheme aims to strengthen the liquidity of exporters by enabling collateral-free credit of up to ₹20,000 crore. The RBI has also extended relief in the form of debt moratoriums and extended export credit tenures to help exporters maintain stability in an uncertain trade environment. The Government emphasised that diversifying export markets remains a key priority and noted that India has already signed 15 Free Trade Agreements and 6 Preferential Trade Agreements with its trading partners. Negotiations are ongoing for FTAs with the EU, Peru, Chile, New Zealand and Oman, with the objective of creating new opportunities for Indian exporters.
On the policy front, the Government informed the Lok Sabha that measures such as permitting “reverse job work” are under consideration. This proposed framework would allow SEZ units to perform certain manufacturing activities for the domestic tariff area, improving utilisation of idle capacities and making SEZ operations more flexible in response to evolving trade conditions.
The Ministry added that it remains in continuous consultation with exporters, Export Promotion Councils, industry bodies and state governments to monitor global trade developments and adjust SEZ policies as needed. The emphasis, it said, is on ensuring that Indian SEZs remain competitive, resilient and capable of navigating an increasingly complex international trade environment.
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