SEZ units must meet positive Net Foreign Exchange Earnings over five years, with specific exemptions under Rule 53.

SEZ units must achieve positive Net Foreign Exchange Earnings (NFE) over a cumulative five-year period from the start of production, as per Rule 53 of the SEZ Rules. Exceptions to this requirement include units in an International Financial Service Centre functioning as Alternate Investment Funds or Mutual Funds, where investible fund inflows and returns are exempt. Additionally, International Financial Service Centre Insurance offices are exempt to the extent of premium income exceeding management expenses, as regulated by the Insurance Regulatory and Development Authority of India guidelines.