India eases defence export rules, widens access to global markets

India has eased rules for exporting defence equipment, including extending the validity of its Open General Export Licence (OGEL) from two to three years and expanding its coverage from 41 countries to all countries except specified sensitive or restricted destinations.

The reforms, announced by India's Ministry of Defence today (28 August), are aimed at simplifying procedures for defence exports and making it easier for Indian manufacturers, particularly micro, small and medium enterprises, to pursue international markets.

Under the revised rules, exporters will no longer need stakeholder consultations for non-lethal defence items destined for most countries, while safeguards will remain for sensitive destinations, the ministry said.

Indian companies will also no longer need to consult other stakeholders before exporting defence items for international tenders or exhibitions.

The revised OGEL will serve as a standing -- one-time export authorisation -- allowing eligible exporters to generate authorisations for multiple consignments of specified defence items without seeking separate authorisation for each shipment.

The government has also consolidated three existing OGEL standard operating procedures covering major platforms and equipment, parts and components, and intra-company transfers of technology into a single framework.

The validity of the OGEL has been extended from two to three years, reducing the need for frequent renewals. Its coverage has also been expanded from 41 countries to all countries except negative or sensitive destinations, and those subject to UN Security Council sanctions or arms embargoes.

A new provision allows Indian companies with long-term contracts or agreements with foreign original equipment manufacturers to obtain licences for eligible items and the particular manufacturer. The licence validity will be aligned with the underlying contract or agreement, subject to prescribed conditions.

The range of items covered by the OGEL has also been expanded. The revised rules allow civil end-use exports of specified parts and components of small-calibre arms and protective equipment.

The defence ministry said the reforms would move India's defence export regime towards a more facilitation-based system by reducing routine procedural requirements.

The changes come as India reports record defence production and exports. Its defence production reached Rs1.78 trillion, while defence exports touched Rs384.24 billion in the 2025-26 financial year, according to the ministry.