The government is focusing on making Special Economic Zones (SEZs) more attractive to investors by considering easing rules to encourage investments in high potential sectors. These sectors include green hydrogen, air cargo, MROs (maintenance, repair & overhaul), and space exploration. Recent reforms in SEZ rules have already addressed the specific needs of semiconductor and electronics component manufacturing sectors, leading to increased investment proposals in these areas. The objective is to utilize the idle capacity and land available in SEZs by encouraging new sectors with potential for growth. For green hydrogen, there are discussions around allowing SEZ units to sell power outside the SEZ and potentially changing the contiguity rules to accommodate the presence of wind turbines. Similarly, for air cargo, the focus is on facilitating aircraft leasing and introducing supportive rules. The SEZ rules have been relaxed for semiconductors and electronic component manufacturing, which has already led to the approval of significant investment proposals in these sectors. The government aims to make the SEZ policy more investor-friendly amidst the expiration of direct tax benefits and the imposition of minimum alternate tax by introducing sector-specific amendments. As a comprehensive amendment to the SEZ Act is a time-consuming process, the government is opting for targeted changes through notifications to address the specific needs of different sectors.