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India eases defence export rules to boost global market access

New Delhi, August 28. The Ministry of Defence has introduced a series of reforms to simplify procedures governing defence exports and the Open General Export Licence (OGEL) framework, aimed at helping Indian defence manufacturers expand their presence in international markets.

(Representational Image)

According to a statement issued by the Ministry of Defence on August 28, the reforms, undertaken by the Department of Defence Production under the guidance of Defence Minister Rajnath Singh, are intended to reduce procedural requirements, speed up export clearances and enable Indian companies to respond more quickly to overseas business opportunities while maintaining safeguards for national security.

Under the revised Defence Export Standard Operating Procedure (SOP), stakeholder consultations will no longer be required for exports of non-lethal defence items to most destinations. However, safeguards will continue to apply to sensitive countries.

The requirement for stakeholder consultation has also been removed for exports of all items for international tenders and exhibitions. The move is expected to allow Indian companies to showcase their products and pursue overseas contracts more efficiently.

The government has also overhauled the OGEL framework, which allows eligible exporters to undertake multiple consignments of specified defence items under a single standing authorisation instead of obtaining separate approvals for each shipment.

Three separate OGEL SOPs covering major platforms and equipment, parts and components, and intra-company technology transfers have been merged into a single unified SOP to provide exporters with a common and simplified regulatory framework.

The validity of an OGEL has been extended from two years to three years, reducing the frequency of renewals and associated compliance requirements.

The geographical coverage of the OGEL has also been substantially widened from 41 countries to all countries, except those classified as negative or sensitive destinations and countries subject to United Nations Security Council sanctions or arms embargoes.

A new provision has been introduced for Indian companies that have long-term contracts or agreements with foreign original equipment manufacturers (FOEMs). Under the provision, OGEL authorisation can be granted for eligible items meant for a specific FOEM, with its validity aligned with the underlying contract or agreement, subject to prescribed conditions.

The revised framework has further expanded the list of items eligible for export under OGEL. It also permits civil-end-use exports of specified parts and components of small-calibre arms and protective equipment, thereby widening the scope for legitimate international business.

The Defence Ministry said the reforms would move India’s defence export regime towards a more facilitation-oriented system by reducing routine procedural requirements while retaining controls over sensitive items, technologies and destinations.

The measures are expected to particularly benefit Indian defence manufacturers, including micro, small and medium enterprises (MSMEs), by enabling them to respond faster to international tenders and exhibitions, access a wider range of overseas markets and reduce repetitive authorisation requirements.

The reforms come as India records strong growth in defence manufacturing and exports. Defence production reached an all-time high of ₹1.78 lakh crore, while defence exports touched a record ₹38,424 crore in 2025-26, according to the Ministry of Defence.

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