The Modi government has announced a fresh set of reforms designed to ease the path for Indian defence companies seeking to expand their presence in the global export market, announced Press Information Bureau.

These measures are intended to cut procedural burdens, broaden the scope of standing export licences, and provide greater flexibility for firms pursuing international opportunities.

The reforms follow a review of the Defence Export Standard Operating Procedure and the Open General Export Licence framework. The defence ministry emphasised that the changes are aimed at reducing routine compliance requirements while ensuring that safeguards remain in place for sensitive defence items, technologies, and destinations.

India’s defence industry has been growing rapidly, with exports reaching a record ₹38,424 crore and domestic defence production climbing to an unprecedented ₹1.78 lakh crore in 2025–26. The ministry described the reforms as a move towards a facilitation-based system that balances ease of business with national security considerations.

At the centre of the reforms is a major overhaul of the OGEL framework. Previously, three separate SOPs covered major platforms and equipment, parts and components, and intra-company transfers of technology. These have now been consolidated into a single unified SOP, giving exporters one common framework instead of multiple procedures. The validity of an OGEL has also been extended from two to three years, reducing the frequency of renewals.

Another significant change is the expansion of geographical coverage. The OGEL facility, earlier restricted to 41 countries, will now apply to all nations except those designated as sensitive or subject to United Nations Security Council sanctions and arms embargoes. This broadening of scope is expected to open new markets for Indian defence firms.

The reforms also introduce a provision for Indian companies with long-term contracts or agreements with foreign original equipment manufacturers. Under this arrangement, an OGEL may be granted for eligible items tied to a particular OEM, with validity aligned to the underlying contract, subject to conditions. This is intended to support sustained industrial partnerships and supply chain integration.

Procedural requirements around export authorisation have also been reduced. For non-lethal defence items to most destinations, stakeholder consultation will no longer be required.

Where necessary, consultations will continue for sensitive countries. Similarly, consultations have been dispensed with for exports related to international tenders and exhibitions, enabling Indian companies to participate more promptly in overseas competitions and showcase their products without delays.

The ministry has expanded the range of items eligible under the OGEL framework. A notable addition is the allowance for exports of specified parts and components of small-calibre arms and protective equipment for civil end-use. This change reflects the government’s intent to support both defence and dual-use industries.

These reforms come at a time when India is positioning itself as a global defence exporter. The country has already achieved significant milestones in supplying systems and components to over 80 nations. 

The new measures are expected to further strengthen India’s competitiveness, reduce bureaucratic delays, and enhance its reputation as a reliable supplier in international defence markets.

PIB