Home Business Semiconductors and Electronics SEZ Land Rule Change from 50 t...

SEZ Land Rule Change from 50 to 10 Hectares for Electronics

Semiconductors and Electronics

Business Honor
07 June, 2025

India cuts SEZ land requirement to 10 hectares, reducing rules to support electronics manufacturing and semiconductors worldwide.

The Union Ministry of Commerce has changed the rules for Special Economic Zones (SEZ) in order to improve India’s role in the production of electronics and semiconductors worldwide. Lowered the minimum area of land needed to establish an SEZ from 50 hectares to only 10 hectares.

According to the change in rule, SEZ can be established on land that is already loaned or leased to the state or central governments or their authorized agencies. Previously, SEZs were only established on land that had no debt or any legal issues.

Along with improving the economic development, SEZ also allows the manufacturers to handle their inventory in a more flexible manner. By paying the necessary taxes, businesses can now sell their products in the domestic tariff area, or home market; they can even export them straight from India.

President of IESA and SEMI India, Ashok Chandak, mentioned that the reduction of rules epically aims to help MSMEs and start-ups to establish and expand their products. Chandak added that the government has strengthened Indian goals to become a worldwide powerhouse for electronics production by reducing regulations to align with land availability and international competition.

Reduced rules will help the manufacturing of essential components needed for many modern innovations, from data centers and industrial automation systems to smartphones and electric cars. Reduction of rules includes reduced reliance on imports, new investment methods, and employment opportunities.