India Cuts Domestic Duties for Special Economic Zones
India now allows export zones to sell goods locally at lower duties to offset trade strains. The move helps firms manage costs amid Middle East supply disruptions.
India has announced that factories located within export-focused Special Economic Zones (SEZs) will be permitted to sell their goods in the domestic market at reduced import duties. This decision comes as escalating conflicts in the Middle East continue to strain international trade and disrupt supply chains.
The measure was initially introduced during the February budget to shield domestic exporters from higher tariffs in the United States. However, the policy has gained renewed urgency as the prospect of war involving Iran threatens global energy supplies and contributes to rising freight and oil costs.
