Page 26 - Policy Economic Report - April 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The concessional framework covers a broad range of sectors including mineral products; chemical
products; plastics and rubber; hides and skins, leather products and articles of fur skins; wood, cork and
paper; textiles and textile articles; footwear and headgear; stone, ceramic and glass; base metals and
articles thereof; machinery and electrical equipment; vehicles, aircraft and transport equipment; optical,
medical and scientific instruments; arms and ammunition; and miscellaneous manufactured articles.
However, sectors such as agriculture (including marine and processed food products, tobacco, etc.),
marble and granite, gems and jewellery, vehicles, toys and petroleum are excluded.

For availing concessional duty benefits, SEZ units are required to furnish a Development Commissioner’s
certificate confirming compliance with conditions, along with a declaration to pay full duty in case of non-
fulfilment. The units will also be subject to audit under SEZ Rules, 2006. The notification is effective from
April 1, 2026 to March 31, 2027.

The above has been implemented vide Notification No. 11/2026-Customs dated March 31, 2026 issued
under Section 25(1) of the Customs Act, 1962. The notification grants conditional customs duty
concessions on goods manufactured in SEZs and cleared to the DTA, including reduced duty rates and, in
certain cases, partial exemption from Agriculture Infrastructure and Development Cess. It applies to units
that commenced production on or before March 31, 2025 and meet specified conditions, while excluding
Free Trade Warehousing Zone units and goods imported into SEZs and cleared to DTA without adequate
manufacturing.

As per Section 30 of the Special Economic Zones Act, 2005, clearance of goods from SEZs to the DTA is
treated as imports into India and attracts applicable customs duties, which had affected the
competitiveness of SEZ manufacturers. The present measure addresses this concern while ensuring a
level-playing field for units operating in the DTA.

7. Government recognizes more than 55,200 startups during FY 2025-26, highest ever in a
single year since launch of Startup India initiative

The Government has recognized more than 55,200 startups during Financial Year 2025-26, marking the
highest number of startups recognized in a single year since the launch of the Startup India initiative.

The Startup India initiative was launched on 16th January 2016 with an Action Plan comprising schemes
and incentives aimed at creating a robust ecosystem for nurturing innovation, encouraging private
investments, and supporting startups across the country. Various programmes are being implemented to
recognize, develop and empower startups.

Since inception, the number of recognized startups has crossed 2.23 lakh as on 31st March 2026,
generating more than 23.36 lakh direct jobs. More than 1.07 lakh recognized startups have at least one-
woman director or partner, accounting for approximately 48% of total recognized startups.

The number of startups recognized increased by 51.6% year-on-year in FY 2025-26 compared to FY 2024-
25, while direct jobs created rose by 36.1% during the same period.

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