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Government eases defence export SOP to help local manufacturers tap global market
These reforms will facilitate quicker access to international markets, allowing Indian defence companies to respond more effectively to global business opportunities, while ensuring that national security considerations are fully protected.
Under the amended SOP, stakeholder consultation has been dispensed with for exports of non-lethal defence items to most destinations, while appropriate safeguards have been retained for sensitive countries.
The government has introduced a series of reforms aimed at reducing procedural requirements to allow the Indian defence industry to have easy access to the global market. In a statement on Friday, the Ministry of Defence said it has simplified the defence export standard operating procedure (SOP) and the open general export licence (OGEL) framework.
These reforms will facilitate quicker access to international markets, allowing Indian defence companies to respond more effectively to global business opportunities, while ensuring that national security considerations are fully protected.
Under the amended SOP, stakeholder consultation has been dispensed with for exports of non-lethal defence items to most destinations, while appropriate safeguards have been retained for sensitive countries.
Moreover, stakeholder consultation has been dispensed with for exports of all items for international tenders and exhibitions, enabling Indian companies to showcase their products and pursue international opportunities more expeditiously.
According to the ministry, the open general export licence is a standing one-time export authorisation that enables eligible exporters to self-generate export authorisations for multiple consignments of specified defence items, without seeking a separate authorisation for each consignment.
It stated that the three existing export licence SOPs covering major platforms and equipment, parts and components, and intra-company transfer of technology have been consolidated into one unified SOP, providing exporters with a common and simpler framework.
Additionally, OGEL validity has been increased from two to three years, reducing the frequency of renewals and associated compliance requirements, and OGEL coverage has been expanded from 41 to all countries, except negative/sensitive nations and those facing UN Security Council sanctions or arms embargoes.
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The range of items covered under OGEL has been expanded, providing greater flexibility to eligible exporters.
“The revised framework also permits civil-end-use exports of specified parts and components of small-calibre arms and protective equipment, further broadening legitimate international business opportunities,” the statement noted.
According to the statement, 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 measures are expected to particularly benefit Indian defence manufacturers, including MSMEs, by enabling them to respond more quickly to international tenders and exhibitions, access wider global markets and reduce repetitive authorisation requirements,” it said.
© The Indian Express Pvt Ltd
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