The Indian government is planning sector-specific SEZ reforms to boost investments in high-growth areas like green hydrogen, air cargo, MRO, and space tech. Following recent successes in semiconductors, such as Micron’s SEZ approval, the focus is on unlocking idle SEZ land and adapting rules to sector needs.

Proposed changes include allowing green hydrogen units to sell power outside SEZs and easing land requirements. For air cargo, reforms may support aircraft leasing.

As broader SEZ Act amendments face delays, the government is opting for quicker, targeted policy tweaks to keep SEZs competitive despite reduced tax incentives and ongoing MAT. The aim is to make SEZs key hubs for next-gen innovation and manufacturing.