Govt expands OGEL framework, simplifies export norms for defence

The govt has simplified defence export rules by expanding the Open General Export Licence (OGEL) framework to all non-sensitive countries, increasing its validity, and reducing procedural hurdles to help Indian firms respond faster to global opportunities.

The government has widened access to global markets for Indian defence manufacturers by simplifying export approvals and expanding the Open General Export Licence (OGEL) framework to cover all countries except sensitive and restricted destinations, in a move aimed at helping companies respond faster to international business opportunities.

Simplified Export Procedures

According to a press release issued by the Ministry of Defence, the Department of Defence Production has also increased the validity of OGEL from two to three years and consolidated three existing procedures into a single framework, reducing repetitive authorisation and compliance requirements for exporters.

Under the revised framework, stakeholder consultation will no longer be required for exports of non-lethal defence items to most destinations, while safeguards will remain in place for sensitive countries. Consultation has also been dispensed with for exports of all items for international tenders and exhibitions, allowing Indian companies to pursue overseas opportunities more quickly.

The reforms are aimed at making India a more competitive and trusted global defence manufacturing and export partner, while retaining safeguards for sensitive items, technologies and destinations, the Ministry of Defence said.

Expanded OGEL Framework

The OGEL framework allows eligible exporters to self-generate export authorisations for multiple consignments of specified defence items without seeking separate approval for each shipment. Its coverage has now been expanded from 41 countries to all countries, except negative or sensitive nations and countries facing UN Security Council sanctions or arms embargoes.

Special Provision for Foreign OEMs

The government has also introduced a provision for Indian companies with long-term contracts or agreements with foreign original equipment manufacturers (FOEMs). Under this provision, OGEL may be granted for eligible items and the particular foreign OEM, with validity aligned with the underlying contract, subject to prescribed conditions.

The range of items eligible under OGEL has also been expanded. The revised framework permits civil-end-use exports of specified parts and components of small-calibre arms and protective equipment, further widening the scope for legitimate international business.

Boosting India's Defence Sector

The Ministry said the changes are expected to particularly benefit Indian defence manufacturers, including MSMEs, by reducing procedural requirements and enabling faster participation in international tenders and exhibitions.

The reforms come as India's defence production reached an all-time high of Rs 1.78 lakh crore, while defence exports touched a record Rs 38,424 crore in FY 2025-26, according to the ministry. The government said the simplified regime is expected to further strengthen the country's defence manufacturing and export ecosystem while balancing greater export facilitation with national security requirements. (ANI)

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