Top-10 Indian States with the Highest Number of Special Economic Zones 2025

India has set up several Special Economic Zones (SEZs) to boost trade, attract foreign investment, and create job opportunities. These zones offer special benefits like tax exemptions and easier business rules to encourage industrial growth. Different states have established many SEZs, but a few lead the list with strong infrastructure, skilled workforce, and business-friendly policies that support India’s growing economy.

What are Special Economic Zones?

Special Economic Zones (SEZs) are specially designated areas within a country where businesses get special incentives and fewer regulations compared to other regions.
In India, SEZs are created to encourage exports, increase foreign investment (FDI), and create employment.

Key Benefits of SEZs

• Tax exemptions on income, customs, and excise duties
• World-class infrastructure like reliable power, water, and transport
• Single-window clearance for faster approvals
• Duty-free imports of raw materials and machinery

These zones operate under the SEZ Act, 2005, managed by the Ministry of Commerce and Industry, making them vital for India’s participation in global trade.

Top-10 Indian States with the Highest Number of Special Economic Zones in 2025

Tamil Nadu leads the list of Indian states with the most special economic zones with the number of operational zones of 51, followed by Telangana, Maharashtra and Karnataka.

Here is the list of top-10 Indian states with the most special economic zones in 2025:

Tamil Nadu

Tamil Nadu tops the list with 51 operational SEZs, accounting for nearly one-fifth of India’s total.
Its industrial strength, skilled workforce, and coastal ports (like Chennai and Tuticorin) make it a hub for IT, automobile, textile, and electronics industries.
Chennai and Coimbatore are the main SEZ centers, hosting global companies that manufacture and export worldwide.

Telangana

With 38 SEZs, Telangana is one of the fastest-growing industrial states.
Hyderabad, the state capital, has become a global hotspot for IT and pharmaceutical exports, supported by government-friendly policies and a strong startup culture.
The T-Hub initiative and digital infrastructure make Telangana a model for modern industrial growth.

Maharashtra

Also with 38 SEZs, Maharashtra is home to India’s financial and industrial capital, Mumbai.
The state’s SEZs focus on IT, manufacturing, and pharmaceuticals — especially around Mumbai, Pune, and Nashik.
Its world-class transport and export infrastructure, including J.N. Port, makes Maharashtra a favorite destination for multinational investors.

Karnataka

Karnataka has 37 operational SEZs, with Bengaluru leading as India’s technology and innovation center.
The state attracts investments in IT, aerospace, biotechnology, and electronics.
Government initiatives for research and startup growth make Karnataka one of India’s most futuristic SEZ states.

Andhra Pradesh

Andhra Pradesh hosts 25 SEZs, mainly located near Visakhapatnam and Srikakulam.
The state’s long coastline, deep-water ports, and industrial corridors help boost exports in pharmaceuticals, aquaculture, and engineering goods.
Supportive state policies continue to attract new investors.