SEZ Rules Relaxed to Promote Semiconductor Manufacturing

On 9th June 2025, the Ministry of Commerce and Industry notified several modifications to the Special Economic Zones (SEZ) Rules, 2006 to enhance the domestic manufacture of semiconductors.

Why India wants to relax sez rules for semiconductor manufacturing?

To Avoid Supply Chain Concentration

  • As per the Semiconductor Industry Association, China accounted for 35% of global semiconductor production in 2021.
  • The COVID-19 pandemic highlighted the risks of over-dependence on a single country for critical components. India aims to diversify its supply chain, reducing vulnerabilities and ensuring more resilience in the face of global disruptions.

To Achieve Self-Reliance

  • The reforms are aligned ....
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