The Ministry of Commerce and Industry has notified amendments to the Special Economic Zones (SEZ) Rules, 2006, to bolster India’s semiconductor and electronics component manufacturing sectors covering products such as display module, sub-assemblies, camera modules, battery cells and assemblies, printed circuit board, and li-ion cells for batteries. The changes permit the use of encumbered land for SEZ setups and liberalize Net Foreign Exchange (NFE) calculations, aiming to attract investors to high-tech industries like semiconductor fabrication, li-ion cells, and wearables.
SEZs in India face challenges due to expired tax holidays and duties on goods moved to the Domestic Tariff Area (DTA), treating SEZ units like foreign manufacturers despite their local economic contributions, particularly for electronic component makers supplying domestic EMS units; allowing duty-free DTA sales could unlock SEZs’ potential for the electronics industry.
For more details refer the story: "Changes to SEZ rules may not only boost chip, electronic manufacturing but also investor interest" from Business Today.
