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India Streamlines Defence Exports and Broadens OGEL Coverage

The reforms are meant to speed sales for Indian makers by cutting approvals and aligning licences with long-term foreign OEM contracts.

Overview

  • The Department of Defence Production announced the package on Friday, Aug. 28, 2026, consolidating three separate OGEL SOPs into a single unified procedure to simplify export rules.
  • OGEL validity has been extended from two years to three years and country coverage has been widened from 41 nations to all countries except named sensitive destinations and those under UN sanctions or arms embargoes.
  • The ministry removed routine stakeholder consultations for exports of non‑lethal defence items to most destinations and for all items bound for international tenders and exhibitions to speed company participation.
  • OGELs remain a standing, one‑time authorisation that lets eligible exporters self‑generate approvals for multiple consignments; the revised rules also expand eligible items and let licences be matched to the length of FOEM contracts subject to conditions and checks.
  • The ministry cited record FY 2025‑26 figures — defence production of ₹1.78 lakh crore and exports of ₹38,424 crore — and reports say the government is targeting ₹50,000 crore in defence exports by 2029‑30, a goal the changes are intended to help MSMEs and manufacturers pursue.