As many as 277 special economic zones (SEZs) are operational and 95 are non-operational in the country as on July 31 this year, Parliament was informed recently. In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said that 372 such zones, out of 436 approved, are notified.

According to the data provided by the minister, the maximum number of non-operational zones are in Haryana (14). It was followed by Telangana (12), Karnataka (11), and nine each in Tamil Nadu and Uttar Pradesh.

He said that the time taken in operationalising SEZs could be due to reasons such as time taken for getting approvals from the statutory/state government bodies, adverse business climate due to shifts in the global economic scenario, and changes in fiscal incentives.

He also informed that exports from these zones stood at Rs 16.4 lakh crore in 2025-26, an increase from Rs 14.63 lakh crore in 2024-25. It was Rs 13.55 lakh crore in 2023-24 and Rs 12.63 lakh crore in 2022-23. Special Economic Zones are set up under the SEZ Act, 2005, and SEZ Rules, 2006. They are primarily private investment-driven initiatives.

A SEZ may be set up either jointly or severally by the central government, state government or any person for manufacture of goods or rendering services or for both or as a free trade warehousing zone.

In a separate reply, Prasada said India and the US have announced on February 7 that the two countries have reached a framework for an interim agreement regarding reciprocal and mutually beneficial trade.

“Negotiations are ongoing,” he said. He added that India has signed 17 Free Trade Agreements (FTAs), including comprehensive economic partnership/ cooperation agreements, with its trade partners.

“16 of these FTAs are currently in force and the FTA with New Zealand signed on 27 April 2026 is under ratification for implementation,” he said, adding seven of these 17 pacts were signed in the last five years with Mauritius, UAE, Australia, the European Free Trade Association (EFTA), the UK, Oman and New Zealand.

In another reply, he said India is committed to fostering and expanding digital trade partnerships with potential nations across the world.

For instance, trade agreements with the UAE, UK, and the European Union include a dedicated chapter on digital trade with an aim to enhance and facilitate digital trade. Replying to a separate question, he said the merchandise trade deficit primarily reflects the import requirements of a rapidly growing economy.

A significant share of India’s imports comprises crude oil, electronic goods, machinery and capital goods, gold and precious stones, and fertilisers, which are essential for meeting domestic consumption requirements, ensuring energy security, supporting manufacturing, infrastructure development and industrial expansion.