India aims to be a major global defence exporter by 2029. Critically evaluate the policy and institutional reforms undertaken to achieve this target.

India's defence exports touched a record ₹23,622 crore in FY 2024-25, reaching around 80 countries [1], against the stated goal of ₹50,000 crore exports and ₹3 lakh crore production by 2028-29 [2]. Reforms have created real momentum, but the scale and depth of the export base remain works in progress.

Procedural and licensing reforms

• Open General Export Licence (OGEL) — a one-time standing authorisation permitting exports of specified items to specified destinations without per-consignment approval, initially issued for two years to 13 partner countries [3].
• The 2026 overhaul unified the separate OGEL procedures into a single framework, extended licence validity, created a licence tied to long-term contracts with foreign OEMs, and dispensed with inter-ministerial consultation for non-lethal items and goods for international tenders and exhibitions.
• The munitions-list export SOP has been simplified with an end-to-end digital portal, digitally signed authorisations and an easier End User Certificate for parts and components [4].

Institutional and supply-side reforms

• Five Positive Indigenisation Lists covering over 5,000 items, plus the SRIJAN portal and iDEX, have widened the vendor base to MSMEs and start-ups [5].
• Defence production reached an all-time high of ₹1.51 lakh crore in FY 2024-25 [6], supported by OFB corporatisation into seven DPSUs and the UP and Tamil Nadu defence corridors.

Critical limitations

• Exports remain skewed towards parts, components and sub-systems rather than complete platforms, keeping value addition modest and import dependence for engines and electronics intact.
• Growth is concentrated: the private sector contributed ₹15,233 crore against DPSUs' ₹8,389 crore [1], with MSMEs still constrained by testing, certification and financing hurdles.
• Easier licensing must not dilute SCOMET end-use screening; retained safeguards for sensitive destinations are therefore essential.
• Weak export credit, marketing and lifecycle after-sales support limit competitiveness against established suppliers.

Overall, the reforms have shifted defence exports from discretionary clearance to a rules-based, digital and predictable regime — a necessary condition for scale. Sustaining it now requires deeper R&D in critical components, dedicated export financing and mission-mode defence diplomacy, so that Aatmanirbhar Bharat matures into India's promise of a reliable and trusted global defence partner.