Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

UK to issue Open General Export Licence (OGEL) to India


From UPSC perspective, the following things are important :

Prelims level: OEGL

Mains level: India-UK defence ties

In the backdrop of the rapid geopolitical turmoil, PM Modi and his British counterpart Boris Johnson agreed on a new and expanded India-UK defence partnership and vowed to seal an ambitious free trade agreement by the end of the year.

What is the news?

  • The UK is creating an Open General Export Licence (OGEL) for India to reduce bureaucracy and slashing delivery times for defence procurement.
  • It will partner with India on new fighter jet technology as well as in the maritime sphere to detect and respond to threats.

What is OGEL?

  • The open General Licence is a type of license that is used for the export license that is issued by the government for domestic suppliers.
  • The items that are to be exported in India are categorised into three types. They are prohibited items, restricted items, and freely importable items. These classifications are made based on the nature and use of the products.
  • The application processing and grant of OEGL will be taken care of by the Department of Defence Production. The process will vary for each case.
  • The primary aim of the OEGL is to give a boost to the defence exports of India. This will also improve the ease of doing business and imports and exports.
  • The countries allowed under the OGELs are: Belgium, France, Germany, Japan, South Africa, Spain, Sweden, UK, USA, Canada, Italy, Poland and Mexico.

Items to be exported

  • The items permitted under OGEL includes components of ammunition & fuse setting device without energetic and explosive material; firing control & related alerting and warning equipment & related system; and body protective items.
  • Complete aircraft or complete unmanned aerial vehicles (UAVs) and any components specially designed or modified for UAVs are excluded under this license.


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