New Delhi: The Modi government Friday announced a set of fresh reforms to make it easier for Indian defence companies to tap into the export market.
These reforms are aimed at cutting procedural requirements, expanding the scope of standing export licences and giving Indian defence companies greater flexibility to pursue international business opportunities.
The reforms, announced by the defence ministry following a review of the Defence Export Standard Operating Procedure (SOP) and the Open General Export Licence (OGEL) framework, are aimed at reducing routine compliance requirements and speeding up access to overseas markets.
However, the government has retained safeguards for sensitive defence items, technologies and destinations.
The changes are significant for India’s growing defence industry, with exports reaching a record Rs 38,424 crore and domestic defence production touching an all-time high of Rs 1.78 lakh crore in 2025-26.
“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.
Also Read: India’s defence exports rocket to Rs 38,424 cr in FY26, up by 63%. US remains top destination
OGEL framework gets major overhaul
At the centre of the reforms is the OGEL framework, which is a standing, one-time export authorisation that allows eligible defence exporters to generate authorisations for multiple consignments of specified items without applying separately for each shipment. It is intended to reduce repetitive paperwork and give companies greater certainty when dealing with international customers.
Under the new framework, three separate OGEL SOPs covering major platforms and equipment, parts and components, and intra-company transfer of technology have been consolidated into a single unified SOP. The move is expected to give exporters one common framework instead of having to navigate multiple procedures depending on the nature of the product or transaction.
The validity of an OGEL has also been increased from two to three years, reducing the frequency of seeking renewals.
One of the biggest changes is the expansion of the geographical coverage of OGELs.
The facility, which was earlier available for 41 countries, will now cover all countries except negative or sensitive destinations and countries subject to United Nations Security Council sanctions or arms embargoes, the defence ministry said.
The reforms also introduce a specific provision for Indian companies that have long-term contracts or agreements with foreign original equipment manufacturers (OEMs).
Under the new provision, an OGEL may be granted for eligible items and a particular foreign OEM, with the validity aligned to the underlying contract or agreement, subject to prescribed conditions.
Fewer consultations for routine exports
The government has also sought to reduce procedural requirements around the export authorisation process itself.
For exports of non-lethal defence items to most destinations, stakeholder consultation will no longer be required. If required, the consultation will continue to be subject to appropriate safeguards for sensitive countries.
Similarly, stakeholder consultation has been dispensed with for exports of all items meant for international tenders and exhibitions.
This is aimed at allowing Indian companies to participate more promptly in overseas tenders and showcase their products at international exhibitions without being held up by procedures that may not add significant security value in such cases.
The ministry has also expanded the range of items eligible for export under the OGEL framework. Yet another change allows export for civil end-use of specified parts and components of small-calibre arms as well as protective equipment.
(Edited by Amrtansh Arora)