SOURCE : AFI
In May 2024, significant updates have been made to the Standard Operating Procedure (SOP) and Open General Export Licenses (OGELs) for exporting munitions list items, as announced by the Department of Defence Production (DDP). These modifications aim to streamline defence exports and support India’s Defence Export Strategy.
The SOP for defence exports has been revised to be more business-friendly, facilitating easier compliance for exporters. These changes are part of a broader initiative to simplify regulatory processes and promote the ease of doing business in the defence sector. By reducing bureaucratic hurdles, the new SOP is expected to encourage more companies to engage in defence exports.
The scope of Open General Export Licenses has been significantly expanded. Previously limited in scope, OGELs now cover 41 Wassennar Arrangement countries, including Brazil. This expansion increases the number of countries and items that can be exported under OGELs, providing greater flexibility and opportunities for Indian defence exporters.
Aligning with India’s Defence Export Strategy, the month of May 2024 saw the issuance of 108 Export Authorisations to 26 countries, totaling a value of Rs. 722.26 crores. Private companies accounted for Rs. 483.97 crores of these exports, while Defence Public Sector Undertakings (DPSUs) contributed Rs. 238.29 crores. This surge in export authorisations highlights India’s growing presence in the global defence market, with a cumulative export value reaching Rs. 5192.99 crores for the fiscal year 2024-25.
In addition to the enhancements in export regulations, the Standing Committee on Private Sector Participation also made significant progress in processing industrial license applications. A total of 19 applications were disposed of in May 2024, facilitating increased private sector involvement in the defence industry.