Domestic market access for SEZs, SOP for trade pacts likely in 100-day plan

The commerce department is chalking out a 100-day action plan that is likely to focus on allowing special economic zones (SEZs) to sell in the domestic market, setting up an all-encompassing trade information platform, standard operating procedures to negotiate free trade agreements (FTAs), and ecommerce export zones.

According to a senior official, the proposed Trade Connect e-Platform, which the department plans to launch as part of its 100-day agenda, seeks to provide information to new and aspiring exporters on non-tariff barriers, identification of products for export, updated tariff schedule of items, and benefits under India's FTAs. It is likely to be on the same lines as electronic platforms in the US and Australia, the official told ET.

Also in the works is a scheme to develop ecommerce export hubs for aggregation of ecommerce supplies. India's ecommerce exports, which go through the postal and courier routes, are pegged at $1.5 billion. Cross-border ecommerce is expected to touch $800 billion by 2025 and $2 trillion by 2030. The department is also discussing ways to push goods and services exports to $2 trillion by 2030.


In FY24, India's goods and services exports were at an all-time high of $778.2 billion, up by 0.23% from $776.4 billion in FY23.

Commerce and industry minister Piyush Goyal, who has taken charge of the ministry for the second time, has sought more ideas from officials. "We have been asked for innovative ideas across areas, and work has begun on making these plans," said an official.

On Tuesday, standard operating procedures (SOPs) for trade pacts and capacity building were discussed at the meeting that Goyal had with the ministry. This assumes significance as the country has inked trade pacts with Mauritius, the UAE, Australia and European Free Trade Association since 2021, and is in talks with the UK and EU for such pacts.

The official cited earlier said amending the SEZ Act would address the concerns and longstanding demand for these zones to be allowed to sell in the domestic market on payment of duty foregone on inputs, as that would help promote value addition.

"The revenue department has agreed to most amendments and a draft cabinet note was prepared on the same earlier," said another official. Another proposal pertains to allowing domestic companies to make payments in rupee for services obtained from the SEZ units. At present, while domestic firms are required to pay in foreign exchange for services rendered by a SEZ unit, it is not applicable for sale of goods, for which payments could be made in rupees.