The Indian government has announced a one-time customs duty concession for special economic zone (SEZ) units, allowing them to sell goods in the domestic market at reduced rates ranging from 6.5% to 15%. This initiative, effective from April 1, 2026, to March 31, 2027, is designed to assist exporters in utilizing their unused production capacity amid uncertain global demand. The relief is granted under Section 25(1) of the Customs Act, 1962, and applies to specified goods manufactured by SEZ units cleared for the domestic tariff area. However, the concession does not extend to units operating in free trade and warehousing zones or to goods imported into SEZs without undergoing manufacturing. Additionally, units must meet certain conditions, including a minimum 20% value addition and a cap of 30% on domestic sales. While trade experts view this as a sign of policy flexibility in response to weak global demand, they caution that the impact may be limited due to modest duty reductions and the exclusion of integrated goods and services tax (IGST) relief. The move aims to bolster domestic production and reduce reliance on imports, which have become more expensive amid global uncertainties.