An inter-ministerial committee led by the Department of Commerce has commenced extensive stakeholder consultations to implement a structural overhaul of India’s Special Economic Zone (SEZ) regime. Operating under the guidance of Commerce Secretary Rajesh Agrawal, the proposed “SEZ 2.0” policy seeks to dramatically enhance domestic competitiveness and reverse declining investment trends. Key industry demands focus on allowing SEZ units to supply goods to the Domestic Tariff Area (DTA) on a duty-foregone basis, effectively matching the operational flexibilities found in EOU and MOOWR frameworks. Additionally, stakeholders are pushing to accept Indian rupee payments for local services to assist high-tech sectors like aerospace and defense, alongside easing reverse job work norms. While SEZ operators argue these changes will drive import substitution against China, domestic units have raised critical concerns regarding the erosion of a level playing field.