India has significantly liberalised its defence export regime, cutting procedural hurdles and expanding the Open General Export Licence (OGEL) framework to help Indian manufacturers access global markets faster.
The reforms announced by the Department of Defence Production (DDP), Ministry of Defence, are aimed at strengthening India’s position as a competitive defence manufacturing and export hub while integrating domestic firms more deeply into global supply chains.
Fewer approvals, faster exports:
Under the revised Defence Export Standard Operating Procedure, stakeholder consultation will no longer be required for exports of non-lethal defence items to most destinations. The relaxation will not apply to sensitive countries.Consultation requirements have also been removed for defence exports intended for international tenders and exhibitions, allowing Indian companies to respond more quickly to overseas procurement opportunities and showcase their capabilities abroad.
OGEL expanded to global markets:
The government has consolidated three existing OGEL procedures covering platforms and equipment, parts and components, and intra-company technology transfers into a single framework.OGEL validity has been extended from two years to three, while its geographical coverage has expanded from 41 countries to all countries, excluding sensitive or restricted destinations, as well as countries subject to UN Security Council sanctions or arms embargoes.The revised framework also creates a dedicated route for Indian companies holding long-term contracts with Foreign Original Equipment Manufacturers (FOEMs). Eligible OGELs can now be aligned with the duration of the underlying contract, subject to prescribed conditions.The list of eligible items has also been widened to include specified parts and components of small-calibre arms and protective equipment for civil end-use.
From domestic production to global supply chains:
The reforms come as India’s defence sector records unprecedented growth. Defence production reached a record ₹1.78 lakh crore, while exports hit an all-time high of ₹38,424 crore in FY 2025-26.The government is now seeking to turn this domestic manufacturing momentum into a sustained global export push.
For Indian MSMEs and emerging defence manufacturers, fewer approvals and a broader licensing framework could significantly reduce the time and compliance costs involved in pursuing international contracts.
The policy also strengthens India’s ambition to become a trusted global defence supplier, supporting partnerships with foreign OEMs, technology collaborations and participation in international defence supply chains.
While the regime is being made more business-friendly, controls over sensitive technologies, destinations and sanctioned countries remain in place.
The message is clear: India is moving from a permission-heavy defence export system towards a facilitation-led model—making it easier for Indian companies to sell abroad without compromising national security safeguards.
