New Delhi: India is cooking up a bold plan to lower the walls between its special export zones and the local markets. The goal? To create a smooth highway for goods and services and turbocharge both exports and manufacturing. Right now, these special economic zones (SEZs) act like closed shops focused mainly on exports, sitting quietly outside India's usual customs rules since 2000. But times are changing, and so is the game. The Prime Minister’s Office (PMO) is chatting with the commerce and revenue departments about shaking up the SEZ rules to make these zones shine brighter in the global trade arena. How big are these zones? Well, SEZs currently contribute about one-fifth of India's total goods exports. In the financial year 2025, around 6,300 units across 276 SEZs sent out goods worth a whopping Rs 14.57 lakh crore, a 7.4% jump from the year before. The big ideas on the table include cutting some customs duties when SEZ goods come into the regular Indian market, letting SEZ units get paid for domestic services in rupees instead of foreign money, and even allowing domestic factories to send work orders inside these zones when needed. A government official admitted, "There are some issues that the SEZs face…These issues are being examined." Officials say these early talks aim to help SEZs achieve the scale and speed that was dreamed of when they started. Currently, SEZs are duty-free islands. But any goods sent to India's domestic tariff area face full customs duties and strict import rules. The proposed reforms want to lower these barriers, so manufacturers can dream bigger, plan for huge units, and enjoy economy of scale. Experts are excited. Pratik Jain from Price Waterhouse & Co LLP said, "It’s about fundamentally shifting the focus from a purely export-centric model to one that promotes integrated 'Development Hubs'—balancing both international and domestic sales." Jain added that by tweaking customs rules and involving states more, SEZs could turn into hotbeds for next-gen industries like semiconductors and green energy. But the industry wants speed and smarter rules. Ajay Sahai from the Federation of Indian Export Organisations stressed, "India’s SEZs need a structural reboot to restore export competitiveness. (It needs to) move swiftly to integrate SEZs with the domestic economy, while enabling digital clearances and reducing transaction costs." Industry voices argue that duties on SEZ manufacturers selling locally should match those under Free Trade Agreements, to keep things fair. They also want to let SEZs help domestic factories by sharing work, especially when exports slow down. Experts like Bipin Sapra from EY urge reforms "including allowing domestic sales with duty recovery equal to the duty foregone on imported inputs, enabling reverse job work to use idle SEZ capacity, and permitting domestic sale of services without the foreign currency condition." In short, India is ready to mix up its export zones with the home market, cooking a spicy recipe for growth and global strength amid uncertain trade winds.