The Union Government has announced important changes to Special Economic Zone (SEZ) rules to encourage investment in making semiconductors and electronics parts.

These changes are meant to help industries that need a lot of money to start, rely on imported goods, and take a long time to become profitable.

The updated rules, announced by the Department of Commerce on June 3, 2025, include changes to Rules 5, 7, 18, and 53 of the SEZ Rules, 2006. 

Under the new Rule 5, SEZs built only for making semiconductors or electronics parts will now need a minimum land area of just 10 hectares, down from 50 hectares before.

A change to Rule 7 now allows the Board of Approval to relax the requirement for SEZ land to be free of debt or legal claims if it's mortgaged or leased to the central or state government or their approved agencies.