India reforms defence export rules to boost global market access

The Indian Ministry of Defence has implemented significant reforms to the defence export framework to enhance global market access for domestic companies, particularly MSMEs. The changes involve a major overhaul of the Open General Export Licence (OGEL) and the consolidation of three separate Standard Operating Procedures (SOPs) into a single, unified framework.

Key updates include extending the validity of the OGEL from two to three years and expanding its geographical scope from 41 countries to nearly all nations, excluding those subject to UN Security Council sanctions or designated as sensitive. To accelerate business, the government has removed the requirement for stakeholder consultation when exporting non-lethal defence items to most destinations, as well as for all items intended for international tenders and exhibitions.

These measures aim to reduce procedural burdens and repetitive compliance requirements, allowing Indian manufacturers to respond more rapidly to international opportunities. The reforms follow a period of rapid growth in the sector, with defence exports reaching ₹38,424 crore and domestic production hitting ₹1.78 lakh crore in 2025–26.