India Reforms Defence Export Rules to Boost Global Competitiveness

The Department of Defence Production implemented comprehensive reforms to the Defence Export Standard Operating Procedure and the Open General Export Licence framework to increase India's competitiveness as a global defence manufacturing partner. These measures align with Prime Minister Narendra Modi's Make-in-India vision by simplifying the authorization process for exports.

The reforms consolidate three existing Open General Export Licence standard operating procedures into a single unified framework and extend license validity from two to three years. To further streamline operations, the government removed stakeholder consultation requirements for international tenders and non-lethal items. The coverage of these licenses now extends to all countries, excluding those deemed sensitive or under United Nations sanctions.

Additionally, a new provision allows license validity to align with long-term contracts involving foreign original equipment manufacturers. These policy shifts follow a record fiscal year 2025-26, during which India's defence production reached Rs 1.78 lakh crore and exports totaled Rs 38,424 crore.