Making it easier for startups and MSMEs to build semiconductor and electronics units, the centre has relaxed the SEZ land norms. The industry views this as a push towards India’s tech manufacturing dream.
The Indian government has reduced the minimum contiguous land area required for special economic zones (SEZs) dedicated solely to semiconductor or electronic component manufacturing. The new threshold is 10 hectares, down from the previous 50 hectares, according to a recent notification from the Ministry of Commerce.
This policy change aims to facilitate the establishment of manufacturing units, particularly benefiting micro, small, and medium enterprises (MSMEs) and startups. The notification also permits the use of encumbered land—land that is mortgaged or leased to the central or state government or their authorised agencies—by relaxing the condition of encumbrance-free area.
Eligible electronic components under this provision include display module sub-assemblies, camera modules, battery packs, printed circuit boards (PCBs), lithium-ion cells, and hardware for mobile and information technology devices.
Industry leaders have welcomed the government’s move. Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA), stated, “These reforms make it significantly easier for companies to establish facilities and scale production in India’s high-tech manufacturing ecosystem.”
He also stated that these measures will particularly benefit the manufacturing of strategic components, such as discrete semiconductors, ICs, PCBs, display and camera modules, battery packs, passive components, and Li-ion cells—core building blocks for devices ranging from smartphones and electric vehicles (EVs) to data centres.
This initiative supports the ‘Design in India to Make in India’ mission, fostering innovation, attracting investment, and creating employment opportunities across the electronics value chain.
