Archive · 2 Aug 2026
India to Allow SEZ Units to Accept Rupee Payments
India’s Commerce Department is working on a new rule that will let companies in Special Economic Zones (SEZs) get paid in rupees instead of foreign money when they provide services to customers inside India.
Right now, SEZ companies have to deal with extra steps and costs to convert money, which makes it hard for them to sell services to airlines, the army, and other big buyers.
The new rule would let them sell services more easily and help them grow.
The change will first need approval from the Cabinet and then from Parliament.
Once passed, it could open up many new business opportunities for SEZ companies.
Commerce Department drafting Cabinet note to amend SEZ Act for rupee payments to SEZ units
Amendment would remove foreign exchange requirement for services, benefiting MRO, engineering, defence, IT sectors
Current rule forces SEZ units to convert payments twice, raising costs and deterring domestic buyers
SEZ units like GMR Aero SEZ and L&T MBDA Missile Systems cannot supply services to airlines or the Indian Air Force under current rule
After Cabinet approval, amendment will need parliamentary clearance
- Who
- Commerce Department and SEZ units
- What
- Cabinet note to amend SEZ Act to allow rupee payments for services
- When
- Drafting underway as of August 2, 2026
- Where
- India, affecting Special Economic Zones nationwide
- Why
- To eliminate transaction costs and enable SEZ units to serve domestic market
- Proposed amendment
- Remove foreign exchange requirement for SEZ services
- Target sectors
- MRO, engineering, defence manufacturing, IT
- Expected benefit
- Unlock business opportunities for SEZ companies
- Next steps
- Cabinet approval followed by parliamentary clearance
- Affected units
- GMR Aero SEZ, L&T MBDA Missile Systems, others