Key Highlights :
Micron to invest ₹13,000 crore in Gujarat’s Sanand SEZ for making semiconductors; Aequs to invest ₹100 crore in Karnataka for electronics manufacturing.
New SEZ reforms reduce land requirements and enable freer use of land as well as entry into domestic markets for manufacturers.
Key Background :
The Government of India significantly reformed SEZs on June 3, 2025, with a view to the high-tech manufacturing sector. Among the reforms included was the reduction of the minimum contiguous land area that can be utilized for establishing SEZs for semiconductors and electronics—to only 10 hectares from 50 hectares. This was done in an effort to break a major stumbling block for the capital-intensive enterprise since it would be easier for firms to establish facilities.
The government allowed SEZ developers to use land that has been leased or mortgaged to government organizations, which previously was banned. This flexibility is expected to unlock valuable tracts of land and speed up project implementation across states.
The second most important change was the amendment of valuation criteria for Net Foreign Exchange (NFE) calculations. The amount of goods received as free of charge can now be included in the NFE calculation, which is especially important for sectors like electronics and semiconductors where high-value raw materials are often provided by clients or joint venture firms.
Additionally, the new SEZ rules allow producers to sell goods within the Indian domestic market once duties applicable are paid by them, giving them more access to markets. The reforms form part of India’s broader strategy to position itself as a world manufacturing hub for electronics and semiconductors. The recent approval of Micron’s ₹13,000 crore investment and Aequs’ ₹100 crore facility is indicative of how such policy reforms are already inducing large-scale, strategic investments—enabling India to compete in the global value chain.
