NEW DELHI: The defence ministry has liberalised India’s defence export regime, expanding the coverage of the Open General Export Licence (OGEL) from 41 countries to almost the entire world, barring countries on the negative or sensitive list and those facing UN Security Council sanctions or arms embargoes.
The move, announced by the Department of Defence Production (DDP) on Friday, is aimed at cutting procedural delays and making it easier for Indian defence manufacturers to tap overseas markets.
The validity of the OGEL, a standing authorisation that permits eligible exporters to make multiple shipments of specified items without seeking fresh approval for every consignment, has also been increased from two years to three years.
The revised Defence Export Standard Operating Procedure (SOP) and OGEL framework have also dispensed with stakeholder consultations in several categories, including exports of non-lethal items to most countries and all items being sent abroad for international tenders and exhibitions.
The ministry said the move would allow Indian companies to “showcase their products and pursue international opportunities more expeditiously”. However, stakeholder consultations will continue in cases involving sensitive countries and destinations.
The changes are expected to particularly benefit small and medium defence manufacturers, for whom repeated applications and clearances can pose a greater compliance burden.
The DDP has also consolidated three separate procedures governing the export of major platforms and equipment, parts and components, and intra-company transfer of technology into a single framework.
Under another change, Indian companies holding long-term contracts with foreign original equipment manufacturers (OEMs) can now be granted an OGEL for eligible items and the particular manufacturer concerned. The validity of such authorisation will be aligned with the duration of the underlying contract.
The list of items eligible under the OGEL has also been expanded to include specified parts and components of small-calibre arms and protective equipment for civil end-use.
The ministry said the reforms would move the export regime towards a “more comprehensive and facilitation-based system” while retaining safeguards for sensitive items, technologies and destinations.
The changes come amid a sharp rise in India’s defence exports, which touched Rs 38,424 crore in 2025-26, up around 63 per cent from Rs 23,622 crore in the preceding financial year.
Public sector undertakings accounted for 54.84 per cent of the exports and private sector companies for 45.16 per cent. The number of Indian companies exporting defence equipment rose to 145, with Indian defence products now reaching more than 80 countries.
India’s overall defence production stood at Rs 1.78 lakh crore in 2025-26.
The government has set a target of achieving Rs 50,000 crore in defence exports by 2029.