India Simplifies Defence Export Approvals and Expands OGEL Framework to Boost Global Reach

The Indian government has introduced a series of regulatory reforms aimed at widening global market access for domestic defence manufacturers. According to an official release by the Ministry of Defence, the Department of Defence Production has simplified export approvals and expanded the Open General Export Licence (OGEL) framework to cover all countries, excluding sensitive destinations and nations facing United Nations Security Council sanctions or arms embargoes.

Under the revised framework, the validity of the OGEL has been increased from two to three years. The government has also consolidated three existing procedures into a single framework to cut down repetitive authorisation and compliance requirements for exporters.

To help companies respond faster to international business opportunities, stakeholder consultations will no longer be required for exports of non-lethal defence items to most destinations, while existing safeguards remain for sensitive countries. Furthermore, consultations have been dispensed with for exports of all items intended for international tenders and exhibitions, allowing Indian firms to pursue overseas opportunities more quickly.

The OGEL framework permits eligible exporters to self-generate export authorisations for multiple consignments of specified defence items without needing separate approvals for individual shipments. Its geographic coverage has grown significantly, moving from 41 countries to virtually all international destinations outside of negative or restricted lists.

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

The range of eligible items under the OGEL has also broadened. The revised guidelines permit civil-end-use exports of specified parts and components for small-calibre arms and protective equipment. The Ministry noted that these changes are designed to particularly benefit Indian defence manufacturers, including micro, small, and medium enterprises (MSMEs), by lowering procedural hurdles and facilitating quicker participation in global exhibitions and tenders.

These policy updates follow a period of growth for the sector. Official data indicates that India's defence production reached ₹1.78 lakh crore, while defence exports recorded ₹38,424 crore in FY 2025-26. The Ministry stated that the simplified regime is intended to strengthen the manufacturing and export ecosystem while maintaining necessary safeguards for national security and sensitive technologies.

"Simplifying regulatory frameworks and extending the OGEL framework are practical steps that will significantly reduce compliance costs for Indian defence manufacturers and MSMEs. By cutting down repetitive authorisations and removing consultation bottlenecks for tenders and exhibitions, the government is enabling domestic enterprises to compete more effectively on the global stage. This policy shift provides the operational agility required to convert growing manufacturing capabilities into sustainable international business." — Dr. Shishir Gupta, Founder & CEO, StartupLanes