Budget 2026 to Overhaul SEZ Norms for Local Sourcing Boost

• Budget 2026 plans major changes to SEZ laws to boost local sourcing from SEZ units.
• Current rules treat SEZ sales to domestic market as imports, attracting full customs duties and making it unviable.
• NITI Aayog's Rajiv Gauba committee recommended modernizing the framework and amending the SEZ Act.
• Proposed reforms include rationalizing duties, possibly taxing only imported inputs, not finished products.
• Aims to integrate SEZs into the domestic supply chain, improve capacity utilization, and facilitate job work for Indian manufacturers.

Why It Matters: SEZ law overhaul in Budget 2026 aims to integrate SEZs with domestic market, boosting local sourcing.