India widens defence export map; brings in major reforms to make country global defence manufacturing hub

India has taken another major step towards becoming a trusted global defence manufacturing and export partner as the defence ministry has undertaken what it claims are “comprehensive reforms” to make it easier for domestic defence manufacturers to sell products overseas and access international markets.

The Department of Defence Production has introduced a series of reforms to the Defence Export Standard Operating Procedure (SOP) and the Open General Export Licence (OGEL) framework, the defence ministry said in a statement.

“These reforms seek to reduce procedural requirements, facilitate faster access to international markets and enable Indian defence companies to respond more effectively to global business opportunities, while ensuring that national security considerations remain fully safeguarded,” the statement from the defence ministry read.

One of the major changes involves simplifying the process for exporting non-lethal defence equipment. Stakeholder consultation will no longer be required for exports of non-lethal defence items to most places. However, safeguards will continue to apply to sensitive countries.

The requirement for stakeholder consultation has also been removed for exports of all items meant for international tenders and exhibitions. This is expected to allow Indian defence companies to showcase their products internationally and pursue overseas business opportunities more quickly.

Changes to OGEL framework

The government has also simplified the Open General Export Licence framework.

OGEL is a one-time standing export authorisation that allows eligible companies to generate their own export authorisations for multiple consignments of specified defence products. This means companies do not have to seek separate approval for every consignment. It provides greater flexibility while reducing repetitive procedural requirements, according to the defence ministry.

Three existing OGEL SOPs covering major platforms and equipment, parts and components, and intra-company transfer of technology have now been merged into a single SOP, giving exporters a simpler common framework.

The validity of an OGEL has also been increased from two years to three years, reducing the need for frequent renewals.

The geographical coverage of OGEL has also been expanded. The OGEL framework, which has earlier covered 41 countries, will now cover all countries except negative or sensitive nations and those facing UN Security Council sanctions or arms embargoes.

The revised rules also introduce a provision for Indian companies that have long-term contracts or agreements with Foreign Original Equipment Manufacturers (FOEMs). OGEL may be granted for eligible items and the particular FOEM, with validity aligned with the underlying contract or agreement, subject to prescribed conditions, according to the defence ministry.

The revised framework also permits civil-end-use exports of specified parts and components of small-calibre arms and protective equipment, further broadening legitimate international business opportunities.

“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 defence ministry stated in a release.

Indian defence manufacturers, including MSMEs, are expected to benefit from the reforms by gaining faster access to international tenders and exhibitions, reaching more overseas markets and facing fewer repetitive authorisation requirements.

The reforms come as India's domestic defence manufacturing and exports have reached record levels. Defence production touched an all-time high of ₹1.78 lakh crore, while defence exports reached a record ₹38,424 crore in FY 2025-26, according to the ministry records.