New Delhi: Get ready for a vibrant makeover of India's Special Economic Zones (SEZs)! The government is thinking of lifting some barriers between these export hubs and the local markets to help goods and services move more freely. Why? To pump up exports and manufacturing in a world full of trade uncertainties. SEZs are special zones set up since 2000 as duty-free manufacturing hubs aiming at boosting exports. Right now, they make about a fifth of India’s total exports of goods. But the current rules keep these zones a bit isolated, especially from the domestic market. Top talks are underway between the Prime Minister's Office and commerce experts to make these zones more competitive. Some ideas on the table include simplifying customs duties when SEZ products sell inside India, allowing payments for local services in Indian rupees (instead of foreign currency), and letting manufacturers send goods into these zones for outsourcing work, even if it’s for domestic sales. A government official told ET, “There are some issues that the SEZs face…These issues are being examined.” The goal? To give SEZ units a bigger stage so they can scale up and shine as intended when first launched. Currently, SEZs are considered outside India’s customs territory, so imports come without licenses and domestic sales pay full customs duty. This plan aims to reduce those heavy customs loads and bring down barriers so that manufacturers in SEZs can dream bigger, invest more, and make India proud on the global trade map. In the financial year 2024-25, nearly 6,300 units in 276 SEZs exported goods worth Rs 14.57 lakh crore, up 7.4% from last year! Yet, officials admit the framework needs to be swift and smart to meet global challenges. Pratik Jain of Price Waterhouse & Co LLP sums it up: “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.” He says easing customs rules and involving states more can turn SEZs into powerful engines for jobs and next-gen industries like semiconductors and green energy. Industry voices also demand a revamp. Ajay Sahai, director general of the Federation of Indian Export Organisations, says, “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.” The industry wants customs duties on SEZ-to-domestic sales to match rates from India’s Free Trade Agreements, avoiding unfair disadvantages. They also suggest SEZs should be allowed to subcontract work for domestic firms when exports slow down, making better use of idle capacity. The rule that domestic services in SEZs must be paid in foreign currency is also under the scanner. Bipin Sapra of EY advises, “Urgent reforms should include 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.” With these spicy reforms, India’s SEZs might just become the sizzling hubs companies need to thrive at home and on the world stage!