SRINAGAR: Jammu and Kashmir has no notified Special Economic Zone (SEZ), even as 277 of the 372 SEZs notified across the country were operational as of July 31, 2026, according to data placed before the Lok Sabha on Tuesday.
The figures, furnished by the Ministry of Commerce and Industry in response to an Unstarred Question, showed that 95 of the country’s notified SEZs were non-operational, while 110 SEZs had been de-notified. The State/Union Territory-wise annexure did not list Jammu and Kashmir among the regions having notified SEZs.
The data also showed that the SEZ network covered a total notified area of 37,568.90 hectares across the country, of which 33,689.74 hectares was classified as operational SEZ area. Since Jammu and Kashmir has no notified SEZ, no land area was reported for the Union Territory under the SEZ framework.
At the national level, the largest number of notified SEZs was recorded in Tamil Nadu with 58, followed by Telangana with 50, Karnataka with 49, Maharashtra with 41 and Andhra Pradesh with 31. Tamil Nadu had 49 operational zones, while Karnataka had 38, Telangana 38, Maharashtra 36 and Andhra Pradesh 25.
Gujarat, which had 28 notified SEZs, accounted for the largest operational SEZ land area at 12,811.88 hectares, followed by Andhra Pradesh at 6,096.21 hectares, Tamil Nadu at 3,880 hectares and Maharashtra at 4,114.07 hectares.
The Ministry said SEZs generated exports worth Rs 16.36 lakh crore during 2025-26, compared with Rs 9.91 lakh crore in 2021-22, indicating a substantial rise over the five-year period. Gujarat recorded the highest SEZ exports in 2025-26 at Rs 4.06 lakh crore, followed by Karnataka at Rs 2.69 lakh crore, Maharashtra at Rs 2.43 lakh crore and Tamil Nadu at Rs 2.12 lakh crore.
Employment generated by SEZs, calculated on a cumulative basis, stood at 32.61 lakh persons in 2025-26, up from 26.96 lakh in 2021-22. Maharashtra recorded the highest employment figure at 6.52 lakh persons, followed by Tamil Nadu at 6.27 lakh, Karnataka at 4.67 lakh, Telangana at 5.27 lakh and Haryana at 2.09 lakh.
The data showed that Jammu and Kashmir did not figure among the States and Union Territories reporting SEZ exports or employment under the SEZ framework for the five-year period covered by the annexure.
On capacity utilisation, the Government said 5,480 SEZ units were operational against 6,223 approved units across the seven zones listed in the annexure, translating into an operationalisation rate of about 88 per cent. The highest number of approved units was recorded under the Kandla Special Economic Zone (KASEZ), with 1,894 approved units, of which 1,400 were operational.
The Government attributed delays in operationalising SEZs to several factors, including the time required to secure approvals from statutory and State Government authorities, adverse changes in the global business environment and changes in fiscal incentives.
The Ministry said the performance and impact of all SEZs were assessed regularly under the provisions of the Special Economic Zones Act, 2005, and the SEZ Rules, 2006, including Rule 79. It added that the respective Development Commissioners, under the overall supervision of the Department of Commerce, evaluate the performance of SEZs on the basis of Annual Performance Reports submitted by SEZ units.
To improve utilisation, attract investment and strengthen the integration of SEZs with domestic supply chains, the Government said it had been implementing measures including single-window clearance mechanisms for faster project approvals and streamlining the regulatory framework by removing avoidable procedural compliances.
The Ministry said such reforms and policy initiatives were a continuous process aimed at enhancing the operational efficiency of SEZs.
The latest figures highlight the absence of a notified SEZ in Jammu and Kashmir at a time when SEZs elsewhere in the country continue to serve as major hubs for exports, investment and employment. The Government’s response, however, did not provide any specific proposal or timeline for establishing a SEZ in Jammu and Kashmir.
