# Government Plans Rupee Payments for SEZ Services Sold Within India

2026-08-06T21:51:09+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The commerce and industry ministry is preparing a Cabinet note to remove the foreign exchange requirement for services supplied by special economic zones to domestic tariff areas, ETCFO reports. Section 2(z) of the SEZ Act, 2005 currently requires these payments to be realised in foreign exchange, unlike goods supplied to domestic entities. The proposed change would align the rule with the Goods and Services Tax law and require an amendment to the Act. Industry is seeking rupee payments for aerospace, defence, maintenance, repair and overhaul, and advanced engineering services. It says the current process adds bank commissions and delays, while discouraging work by Indian units. SEZ exports fell to $133.45 billion in 2025-26 from $172.07 billion in 2024-25. India has 276 operational SEZs with 6,695 units.

## Coverage

- cfo.economictimes.indiatimes.com <https://cfo.economictimes.indiatimes.com/news/policy/government-to-revamp-forex-rules-for-sez-services-exports-to-boost-domestic-market/132817030>

Tags: Commerce Ministry, defence services, foreign exchange, services exports, SEZs
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