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Context

Recently the Ministry of External Affairs dismissed a U.S. media report that alleged Hindustan Aeronautics Limited supplied British sourced items to Russia as factually incorrect and misleading.

The MEA highlighted India’s robust legal and regulatory framework on strategic trade that governs overseas commercial activities of Indian companies.

This comes amidst a backdrop of rising global scrutiny on defence trade especially following the Russia Ukraine conflict of 2022 and the Gaza crisis.

Why Strategic Trade Controls Matter

The primary objective of India’s export controls is to

1. Prevent the proliferation of Weapons of Mass Destruction and their delivery systems.
2. Regulate the uncontrolled transfer of conventional armsand dual-use items.
3. The framework ensures compliance with international obligationswhile promoting responsible defence exports.

Legal and Institutional Framework

Handbook on Strategic Trade Control Systems

Issued by the Directorate General of Foreign Trade under the Ministry of Commerce and Industry.

Maintains a harmonised list of dual-use and military items including software and technologies.

These items have both civilian/industrial and military/WMD applications.

Items are regulated through Export Authorisation / Licence unless specifically exempted or prohibited.

SCOMET List

India regulates exports via the SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) list.

Category 6 covers the Munitions List which requires clearance from the Department of Defence Production.

India’s Multilateral Commitments

India is a signatory/member of major disarmament and export control regimes.

India’s Policy of Strategic Neutrality

India follows a non-aligned policy in global conflicts.

Declined Israel’s request for artillery shells during Gaza offensive.

Has not supplied kinetic weapons to either Russia or Ukraine post-2022 war.

This enhances India's global image as a responsible exporter.

Public and Private Sector Involvement

PSU Driven Export Platforms

Dornier 228 aircraft

155 mm Advanced Towed Artillery Gun

BrahMos & Akash Missiles

Radar Simulators, Pinaka Rockets

India now exports to over 100 countries.

Increasing participation of Indian private defence firms in manufacturing and exports diversifying the export base.

Steps Taken to Boost Defence Exports

Regulatory Simplification

Defence Products List rationalised – most parts/components don’t need industrial licence.

Introduction of Defence Production and Export Promotion Policy.

Streamlining Procedures

Standard Operating Procedures updated.

Export Promotion Cell established.

Geographical zones allocated to DPSUs for targeted marketing.

Digital Reforms

End-to-end online portal for export authorisation applications:

Digital submission, signing and approval.

Faster turnaround time, transparency and accountability.

Delegation and Flexibility

2018: DDP designated as the nodal agency for export licences of small arms/ammunition parts.

Government-signed End User Certificate waived for Wassenaar Arrangement countries for engineering services.

Open General Export Licence

Pre-approved, blanket licence for specific items to specified countries.

Eliminates case-by-case authorisation, reduces red tape and encourages exporters.

Recent Trends and Targets

Sources:

HINDU