Government seeks SEZ Act update to allow rupee payments domestically
India's government is looking to update the SEZ Act so companies in Special Economic Zones can sell services to domestic markets without needing payments in foreign currency.
If approved, this would let businesses do deals in rupees, making things simpler and more consistent with GST rules.
Aerospace and defense cite conversion fees
Industries like aerospace and defense say the old rule forces them to pay extra fees for currency conversion, making projects slower and pricier.
They believe switching to rupee payments will cut costs and help Indian service providers work faster, especially since SEZ exports have recently dropped from $172.07 billion to $133.45 billion, showing it's time for a refresh.
SEZ changes could boost India's exports
With 276 active SEZs and thousands of units across India, these changes could boost exports and make it easier for local industries to tap into homegrown talent.