The Ministry of Defence has streamlined India’s Defence Export Standard Operating Procedure (SOP) and Open General Export Licence (OGEL) to speed up the process and help the Indian manufacturing sector reach global markets. Except for a few items of non-lethal arms, no stakeholder concurrence will be needed for the shipment of these articles. Similarly, this requirement will not be necessary for exporting goods intended for international tendering or exhibitions. However, protection for high-security zones/sensitive equipment will continue to exist.
The three individual Open General Export Licence procedures are now integrated into a single one. The licence validity period has extended from two years to three years, and the range of eligible countries has widened further; countries covered by United Nations sanctions regimes, arms embargoes, and other security restraints are not eligible. Eligible exporters can use the licence to send multiple batches of specified goods instead of seeking permission for each batch individually.
The reform is to make way for Indian manufacturers entering long-term contracts with foreign original equipment manufacturers. It is felt that the MSMEs in the country will benefit particularly through this, as their consignments of defence products comprising components, protective devices, etc could be exported in a routine manner.
