India expands defence export licence coverage, cuts approval red tape
India simplifies defence export approvals, expanding OGEL to all non-sensitive countries and easing rules for non-lethal items.
The Ministry of Defence has announced a significant overhaul of its export licensing regime, aimed at giving Indian defence manufacturers faster access to global markets. The revised Open General Export Licence (OGEL) framework now covers all countries except those on a negative or sensitive list, including nations under UN Security Council sanctions or arms embargoes. Previously, the framework was limited to 41 countries.
The Department of Defence Production has also extended the validity of an OGEL from two years to three. In a move to reduce bureaucratic burden, three separate procedures have been consolidated into a single framework, eliminating repetitive authorisation and compliance steps for exporters.
Under the new rules, stakeholder consultation is no longer required for exports of non-lethal defence items to most destinations, though safeguards remain for sensitive countries. Consultation has also been waived for all items exported for international tenders and exhibitions, allowing companies to pursue overseas opportunities without delay.
The framework now includes a provision for Indian firms with long-term contracts with foreign original equipment manufacturers (FOEMs). In such cases, an OGEL may be granted for eligible items tied to that specific OEM, with validity aligned to the underlying contract.
Additionally, the list of eligible items has been broadened. Civil-end-use exports of specified parts and components for small-calibre arms and protective equipment are now permitted, widening the scope for legitimate international business.
The ministry said the changes are expected to particularly benefit small and medium enterprises by cutting procedural requirements and enabling faster participation in global tenders. The reforms come as India's defence production hit a record Rs 1.78 lakh crore, with exports reaching Rs 38,424 crore in FY 2025-26. The government said the simplified regime balances greater export facilitation with national security requirements.