The Indian government is contemplating a new round of regulatory relaxations in Special Economic Zones (SEZs) to appeal to investors in high-growth sectors such as green hydrogen, air cargo, and semiconductor manufacturing. These changes aim to address the evolving needs of industries and unlock idle SEZ land and infrastructure. The planned relaxations include allowing SEZ-based green hydrogen producers to sell power outside the zone and reconsidering the traditional requirement of contiguous land parcels for green hydrogen units. The government's flexibility in adapting SEZ rules has already proven successful in the semiconductor sector, leading to major investments like Micron Semiconductor Technology's SEZ in Gujarat. Despite delays in comprehensively amending the SEZ Act, the government is issuing sector-specific notifications to drive reforms and keep SEZs competitive in the absence of previous tax benefits. By aligning policy frameworks with industry demands, the Commerce Department aims to position SEZs as hubs of innovation and manufacturing for India's future economy.