The Government of India has constituted a 17-member committee to recommend broad-based reforms in the country’s Special Economic Zones Act, 2005 framework and chart a roadmap for a new SEZ 2.0 policy, according to an official. The panel will prepare a concept paper outlining policy changes aimed at aligning SEZs with evolving global trade dynamics and India’s export promotion strategy.

It will undertake a background study focused on the harmonisation of various prevalent export promotion schemes, including SEZs, export-oriented units (EoUs), MOOWR (Manufacturing and Other Operations in Warehouse), Advance Authorisation, EPCG (export promotion for capital goods), and Duty Free Import Authorisation (DFIA), according to a report by The Economic Times.

The committee’s composition includes representatives from commerce, customs, Niti Aayog, DPIIT, and CBIC.

The terms of reference include examining the existing Special Economic Zones (SEZ) Act, 2005, with a view to assessing their effectiveness in the current global trade, investment environment and macro-economic landscape and harmonisation with other export promotion schemes so that policy distortion, if any, may be addressed.

It will evaluate the impact of recent and proposed reforms in SEZ policy, including measures relating to Domestic Tariff Area (DTA) sales, fiscal and non-fiscal incentives, compliance requirements, and operational flexibilities, on exports, investment, employment and ease of doing business.

It will also assess the effectiveness of SEZs in attracting domestic and foreign investment, promoting manufacturing generation, services, technology up-gradation, value addition, and employment, including for MSMEs.