India has eased defence export rules by expanding OGEL coverage, extending licence validity and reducing procedural requirements to help companies access global markets.
Government Introduces New Defence Export Reforms
The Indian government has introduced a series of reforms to make it easier for domestic defence companies to access international markets. The changes aim to reduce procedural requirements, expand the scope of standing export licences and provide greater flexibility to Indian defence exporters.
The reforms were announced by the Defence Ministry following a review of the Defence Export Standard Operating Procedure (SOP) and the Open General Export Licence (OGEL) framework.
While the government has simplified routine compliance procedures, safeguards remain in place for sensitive defence equipment, technologies and destinations.
Defence Exports Reach Record High
The reforms come as India’s defence manufacturing and exports continue to expand. Defence exports reached a record ₹38,424 crore, while domestic defence production touched an all-time high of ₹1.78 lakh crore in 2025-26.
According to the ministry, the updated framework moves India’s defence export system towards a more facilitation-based approach while maintaining necessary controls over sensitive items and markets.
The changes are expected to provide Indian companies with greater certainty and reduce delays when pursuing international business opportunities.
OGEL Framework Gets Major Changes
A key part of the reforms is the Open General Export Licence, or OGEL. It is a standing, one-time export authorisation that allows eligible defence exporters to handle multiple consignments of specified products without obtaining separate approval for every shipment.
Under the revised system, three separate OGEL SOPs covering major platforms and equipment, parts and components, and intra-company technology transfers have been consolidated into one unified SOP.
The validity period of an OGEL has also been increased from two years to three years, reducing the need for frequent renewals.
OGEL Coverage Expanded to More Countries
One of the most significant changes is the expansion of the geographical coverage of OGELs.
Previously, the facility was available for 41 countries. Under the new framework, it will cover all countries except designated negative or sensitive destinations and countries facing United Nations Security Council sanctions or arms embargoes.
The government has also introduced provisions for Indian companies holding long-term agreements with foreign original equipment manufacturers. Eligible companies may receive an OGEL for specified items and a particular foreign OEM, with the licence validity aligned with the underlying agreement, subject to applicable conditions.
Procedural Requirements Reduced
The reforms also seek to make the export authorisation process faster.
For non-lethal defence items exported to most destinations, stakeholder consultation will no longer be required. Appropriate safeguards will continue to apply to sensitive countries.
Similarly, stakeholder consultation has been removed for exports of items intended for international tenders and exhibitions. This is expected to help Indian defence companies participate more quickly in overseas tenders and showcase their products at international exhibitions.
The range of products eligible for export under the OGEL framework has also been expanded. Specified parts and components of small-calibre arms, along with protective equipment intended for civil end-use, can now be exported under the framework.
What the Reforms Mean for India’s Defence Industry
The changes are aimed at creating a more efficient export environment for Indian defence manufacturers while retaining controls over sensitive technologies and destinations.
By reducing repetitive paperwork, extending licence validity and expanding market coverage, the government is seeking to help Indian companies compete more effectively in international defence markets.
The reforms come as India seeks to strengthen its position as a global defence manufacturing and exporting hub, with growing domestic production providing a larger base for international sales.
Key Takeaways
- Defence exports reached a record ₹38,424 crore in 2025-26.
- Domestic defence production touched ₹1.78 lakh crore.
- OGEL validity has increased from two years to three years.
- OGEL coverage has expanded beyond the earlier 41-country framework.
- Three separate OGEL SOPs have been consolidated into one.
- Procedural requirements for several exports, tenders and exhibitions have been reduced.
- Safeguards remain for sensitive items, technologies and destinations.
