India eases defence export rules, widens OGEL coverage; Here’s what has changed

The government on Friday announced a slew of reforms to simplify defence export procedures, including widening the scope of the Open General Export Licence (OGEL) to cover all countries except sensitive and restricted destinations.

The Department of Defence Production under the Ministry of Defence has simplified the Defence Export Standard Operating Procedure (SOP) and OGEL framework to reduce procedural requirements and help Indian defence companies access overseas markets faster.

Under the revised Defence Export SOP, stakeholder consultation will no longer be required for exports of non-lethal defence items to most destinations.

Appropriate safeguards will, however, continue to apply to sensitive countries.

“Stakeholder consultation has been dispensed with for exports of all items for international tenders and exhibitions, enabling Indian companies to showcase their products and pursue international opportunities more expeditiously,” the defence ministry said.

The government has also consolidated three existing OGEL SOPs covering major platforms and equipment, parts and components, and intra-company transfer of technology into a single unified SOP.

The OGEL is a standing, one-time export authorisation that allows eligible exporters to self-generate export authorisations for multiple consignments of specified defence items, instead of obtaining a separate authorisation for each shipment.

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

The coverage of OGEL has also been expanded from 41 countries to all countries, barring negative or sensitive nations and countries facing UN 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 can be granted for eligible items and the particular FOEM, with its validity aligned with the underlying contract or agreement, subject to prescribed conditions.

The range of items eligible for OGEL has also been expanded. The revised framework additionally permits civil-end-use exports of specified parts and components of small-calibre arms and protective equipment.

“The reforms move India’s defence export regime towards a more comprehensive and facilitation-based system, reducing routine procedural requirements while retaining appropriate safeguards for sensitive items, technologies and destinations,” the ministry said.

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