What is the common examiner trap about Economy in UPSC exams?

They may ask about the total number of SEZs in India (over 270 operational) versus the number in a specific region (62 in TAP). Another trap is confusing the old term 'Export Processing Zone (EPZ)' with 'Special Economic Zone (SEZ)', or asking about the year of the SEZ Act (2005) versus the establishment year of MEPZ (43 years ago).

What should UPSC aspirants remember about Economy for Prelims?

1. Target this Data: Record export value of ₹2.2 lakh crore from TAP region SEZs in FY 2025-26. 2. Target this Nodal Body: MEPZ (Madras Export Processing Zone) Development Commissioner. 3. Target this Sectoral Share: IT-ITES sector's contribution of 88.4% to total exports.

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News 21 of 25

TAP Region SEZs Achieve Record ₹2.2 Lakh Crore Exports in FY 2025-26, IT-ITES Contributes 88.4%

Q: The Madras Export Processing Zone (MEPZ) falls under the administrative purview of which key official?

Development Commissioner of the SEZ, As per the SEZ Act, 2005 and its rules, each SEZ is headed by a Development Commissioner. The article mentions MEPZ Development Commissioner Alex Paul Menon providing the data, confirming this administrative structure.

Q: Consider the following statements regarding the news about SEZs in the TAP region: 1. The export earnings from the IT and ITES sector accounted for more than 85% of the total exports from the region's SEZs in FY 2025-26. 2. The Madras Export Processing Zone (MEPZ) is the newest SEZ established in the Tamil Nadu region. 3. The cumulative investment attracted by the SEZs in the region in FY 2025-26 was over ₹80,000 crore. Which of the statements given above is/are correct?

Both 1 and 3, Statement 1 is correct as the article states IT-ITES contributed 88.4% (more than 85%). Statement 2 is incorrect because MEPZ is mentioned as 43 years old, not the newest. Statement 3 is correct as the cumulative investment is stated as ₹82,844 crore (over ₹80,000 crore).

Q: According to the news, what was the approximate value of exports from the engineering, electronics, and hardware sectors from the TAP region SEZs in FY 2025-26?

₹16,384 crore, The article explicitly states that exports from the engineering, electronics, and hardware sectors reached ₹16,384 crore. The other options are close distractors based on common numerical confusions.

Q: What is a significant implication of the high concentration of IT-ITES exports (88.4%) from the TAP region SEZs, as highlighted in the news?

It poses a risk due to over-reliance on a single sector for export earnings., While the high share demonstrates sectoral strength, economic resilience requires diversification. Over-reliance on one sector makes the regional economy vulnerable to global shocks in that specific industry, such as tech sector slowdowns or policy changes in client countries.

Economy Infrastructure PolityHIGH

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link

10 Jun 2026

~2 min

Source: Unknown

Key Data:₹2.2 lakh crore₹2.03 lakh crore₹68,104 crore62 functional SEZs₹82,844 crore₹8,677.9 crore

Bodies:MEPZ (Madras Export Processing Zone)

Practice MCQs from today's news ▸

~2 min · Quick mode

What This Article Covers

1.The TAP region's SEZs achieved a record ₹2.2 lakh crore in exports in FY 2025-26, up from ₹2.03 lakh crore in the previous year, marking significant growth.

2.IT and ITES sectors were the top performers, accounting for 88.4% (₹1.9 lakh crore) of the total export earnings, while engineering/electronics and non-leather footwear sectors also showed strong growth.

3.The region's 62 functional SEZs have attracted cumulative investments of ₹82,844 crore and provide direct employment to 6.26 lakh workers, with women constituting a large portion of the workforce.

The Big Picture

Prelims · HighMains · Medium

The Special Economic Zones (SEZs) in the Tamil Nadu, Andhra Pradesh, and Puducherry (TAP) region have set a new export record of ₹2.2 lakh crore in FY 2025-26, with IT-ITES dominating the earnings. This performance highlights the critical role of SEZs in boosting regional employment, attracting FDI, and driving India's export-led growth strategy.

Exam Lens

Quick Exam Facts From News

FY 2025-26 Exports₹2.2 Lakh Crore

Total SEZs in TAP Region62

IT-ITES Export Share88.4% (₹1.9 Lakh Crore)

Cumulative Investment (2025-26)₹82,844 Crore

Total Employment6.26 Lakh Workers

1-Minute Revision

›FY 2025-26 Exports: ₹2.2 Lakh Crore
›Total SEZs in TAP Region: 62
›Target this Data: Record export value of ₹2.2 lakh crore from TAP region SEZs in FY 2025-26.
›Target this Nodal Body: MEPZ (Madras Export Processing Zone) Development Commissioner.
›Target this Sectoral Share: IT-ITES sector's contribution of 88.4% to total exports.

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News Snapshot

📈

Record Export Growth

SEZs in the TAP region registered a record ₹2.2 lakh crore in exports for FY 2025-26, a significant increase from ₹2.03 lakh crore in the previous year.

💼

IT-ITES Dominance

The IT and ITES sector contributed a massive 88.4% (₹1.9 lakh crore) to the total export earnings, underscoring its pivotal role in the regional economy.

👥

Employment Generation

These SEZs employ 6.26 lakh workers, with 18,888 new jobs added in FY 2025-26, highlighting their role as major employment hubs, especially for women.

Detailed Analysis & Strategic Depth

Context / Background

The SEZ policy, introduced in 2005, aims to boost exports, attract foreign investment, and generate employment through tax incentives and simplified regulations. The TAP region, with its 62 functional SEZs including the 43-year-old Madras Export Processing Zone (MEPZ), has been a cornerstone of this strategy, demonstrating sustained growth from ₹68,104 crore in exports in 2014-15.

Core Analysis & Implications

The record exports highlight the success of SEZs in driving regional economic growth. The heavy reliance on IT-ITES (88.4%) indicates sectoral concentration, posing a diversification challenge. However, strong growth in engineering/electronics (₹16,384 crore) and non-leather footwear (₹4,027 crore) shows emerging diversification. The significant FDI (₹8,677.9 crore) and large investments from companies like Pou Chen and Viatris validate India's manufacturing appeal under schemes like 'Make in India' and PLI.

Future Outlook / Way Forward

To sustain growth, the region must focus on diversifying its export basket beyond IT-ITES, potentially into pharmaceuticals, electronics hardware, and green technology. Enhancing ease of doing business, upgrading port and logistics infrastructure, and skill development for the workforce will be crucial. The performance sets a benchmark for other regions and reinforces the argument for revisiting and refining the SEZ policy framework to address global trade challenges.

Key Facts at a Glance

FY 2025-26 Exports₹2.2 Lakh Crore

Total SEZs in TAP Region62

IT-ITES Export Share88.4% (₹1.9 Lakh Crore)

Cumulative Investment (2025-26)₹82,844 Crore

Total Employment6.26 Lakh Workers

You've read the full analysis. Now test your understanding.

Practice exam-style questions based on this article.

Q1Static LinkageEasyUPSC, SSC, State PSC

The Madras Export Processing Zone (MEPZ) falls under the administrative purview of which key official?

Q2Statement-basedHardUPSC, SSC

Consider the following statements regarding the news about SEZs in the TAP region:

1. The export earnings from the IT and ITES sector accounted for more than 85% of the total exports from the region's SEZs in FY 2025-26.

2. The Madras Export Processing Zone (MEPZ) is the newest SEZ established in the Tamil Nadu region.

3. The cumulative investment attracted by the SEZs in the region in FY 2025-26 was over ₹80,000 crore.

Which of the statements given above is/are correct?

Q3Data-centricMediumUPSC, Banking, SSC

According to the news, what was the approximate value of exports from the engineering, electronics, and hardware sectors from the TAP region SEZs in FY 2025-26?

Q4Application/ImpactMediumUPSC, SSC, Banking

What is a significant implication of the high concentration of IT-ITES exports (88.4%) from the TAP region SEZs, as highlighted in the news?

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TAP Region SEZs Achieve Record ₹2.2 Lakh Crore Exports in FY 2025-26, IT-ITES Contributes 88.4%

Exam Lens

Quick Exam Facts From News

1-Minute Revision

News Snapshot

Record Export Growth

IT-ITES Dominance

Employment Generation

Detailed Analysis & Strategic Depth

Context / Background

Core Analysis & Implications

Future Outlook / Way Forward

Prelims Flashpoints

Key Facts at a Glance