SEZ Policy and Performance — Policy Reforms

Entry	Year	Description	Impact
SEZ Rules Amendment 2009	2009	Introduced flexibility in minimum area requirements for sector-specific SEZs and allowed domestic sales up to 10% of previous year's exports without payment of duties	Increased operational flexibility for SEZ units and made smaller sector-specific SEZs more viable, leading to growth in IT/ITES and pharmaceutical SEZs
SEZ Rules Amendment 2012	2012	Permitted SEZ units to set up warehouses in Domestic Tariff Area and allowed sharing of infrastructure facilities between SEZ and non-SEZ areas under specific conditions	Enhanced operational efficiency and reduced infrastructure costs for SEZ developers and units, improving overall competitiveness
SEZ Rules Amendment 2020	2020	Increased domestic sales limit to 50% of exports and simplified procedures for SEZ-to-non-SEZ conversions, along with relaxations during COVID-19 pandemic	Provided greater market access flexibility and helped SEZ units navigate pandemic-related disruptions while maintaining viability