India's Special Economic Zones (SEZs) are key drivers of economic growth, export promotion, and industrial development. As of 2025, India boasts 279 operating SEZs, providing tax breaks, world-class infrastructure, and streamlined regulations to draw domestic and international investment.
These zones have emerged as hotspots for IT, manufacturing, pharmaceuticals, and export industries. This listicle presents the top 10 Indian states that have the most operating SEZs, highlighting their economic prowess and strategic significance.
What are Special Economic Zones?
Special Economic Zones (SEZs) are specifically demarcated zones within a nation that have unique economic regulation compared to the rest of the country. In India, SEZs are developed to increase exports, increase foreign direct investment (FDI), create jobs, and develop industry. They provide advantages such as:
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Exemption on income, customs, and excise duty
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International-standard infrastructure such as power, water, and transport
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Single-window clearance for approvals and regulatory requirements
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Duty-free import of equipment and raw materials
SEZs are regulated by the SEZ Act, 2005, and administered by the Ministry of Commerce and Industry. They are important in integrating India into the world supply chain.
Top 10 States in India With the Most Number of Special Economic Zones (2025)
As per SEZ India, following is the list of states in India with the most number of SEZs-
Rank | State/UT | Operational SEZs |
1 | Tamil Nadu | 51 |
2 | Telangana | 38 |
3 | Maharashtra | 38 |
4 | Karnataka | 37 |
5 | Andhra Pradesh | 25 |
6 | Gujarat | 21 |
7 | Kerala | 20 |
8 | Uttar Pradesh | 14 |
9 | Haryana | 8 |
10 | West Bengal | 7 |
1. Tamil Nadu – The SEZ Powerhouse
Tamil Nadu has 51 functional SEZs, which represent more than 18% of India's total. The state's robust industrial sector, strategic location near the local major ports such as Chennai, and high-quality manpower attract investment. Sectors of significance are IT, automotive, textiles, and electronics. Chennai and Coimbatore are prominent SEZ centers with global companies catering to the manufacturing and services sectors.
2. Telangana
Telangana boasts 38 SEZs, emerging as a hub for IT and pharma industries. Hyderabad, the capital city, is home to large technology parks and biotech SEZs, facilitated by a strong startup ecosystem and government support. Digital infrastructure focus and innovation by the state have fueled fast SEZ development.
3. Maharashtra
Maharashtra, too, with 38 SEZs, is a power center of IT, manufacturing, and financial services. Mumbai and Pune are major hubs, having SEZs in software, engineering, and pharmaceuticals. Its advanced infrastructure and connectivity to global markets make it a favorite destination for multinational companies.
4. Karnataka
Karnataka, where Bengaluru is located, has 37 SEZs, mostly IT, aerospace, and biotechnology. The state's international image as India's high-tech hub, along with solid academic institutions and policies of innovation, keeps drawing high-tech investments.
5. Andhra Pradesh
Andhra Pradesh, with 25 SEZs, utilizes its long coast and ports such as Visakhapatnam to drive the development of pharmaceuticals, aquaculture, and engineering. The policies of the state for wooing investors and industrial corridors are fueling SEZ growth.
6. Gujarat
Gujarat boasts 21 SEZs, complemented by its strong industrial sector and the Gujarat Industrial Development Corporation (GIDC). The major industries are petrochemicals, textiles, and engineering. The state's location and access to ports make it more export-oriented.
7. Kerala
Kerala has 20 SEZs, principally in IT, healthcare, and marine products. Kochi and Thiruvananthapuram are important nodes, with increasing investments in digital health and software services.
8. Uttar Pradesh
Uttar Pradesh has 14 SEZs, an indication of its rising industrial aspirations. The state's proximity to Delhi-NCR, e-auction policies, and infrastructure development are pulling in new investments in electronics and manufacturing.
9. Haryana
Haryana boasts 8 SEZs, leveraging its proximity to Delhi and excellent connectivity. IT and manufacturing SEZs are located in Gurgaon and Faridabad, which are critical nodes in the industrial network of the National Capital Region.
10. West Bengal
West Bengal possesses 7 SEZs, with Kolkata and Salt Lake City being major hubs. The state is reviving its industrial base with fresh investments in IT and electronics, buoyed by policy reforms.
The top 10 states having the highest number of SEZs reflect India's geographical concentration of industry and export activity, with southern and western states leading the pack. Though Tamil Nadu, Telangana, and Maharashtra dominate the list, rising states such as Uttar Pradesh demonstrate great potential.
Diversifying SEZs in underrepresented areas, particularly in the Northeast, can potentially balance regional development and enhance India's global economic presence.
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