India, Australia agree on framework to streamline defence trade and services
India and Australia agreed on a framework aimed at streamlining defence trade and services between the two countries, concluded during an official visit to Australia that began on 8 July
The framework builds on the existing Comprehensive Strategic Partnership between the two countries, which covers defence industrial collaboration, logistics, and technology cooperation
It forms part of a broader set of announcements during the visit, alongside new defence and security cooperation instruments and a maritime security collaboration roadmap
The move is aimed at reducing procedural friction in defence procurement, servicing, and industrial collaboration between Indian and Australian defence entities
India's Defence Export Control Architecture — SCOMET and DGFT
Export of defence and dual-use items from India is governed through the SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) list, administered by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, in coordination with the Department of Defence Production (DDP) under the Ministry of Defence. Streamlining bilateral defence trade typically involves easier end-use certification, faster licensing turnaround, and mutual recognition of export authorisations between partner countries.
Key Details
- DDP is the designated licensing authority for Category 6 (military goods) items under the SCOMET list, a change intended to streamline defence-specific export licensing separately from general dual-use goods
- India aligns its export control lists with four multilateral regimes: the Missile Technology Control Regime (MTCR, joined 2016), the Wassenaar Arrangement (2017), the Australia Group (2018), and guidelines consistent with the Nuclear Suppliers Group (NSG), of which India is not yet a member
- DGFT has introduced a liberalised General Authorisation policy covering drones, dual-use chemicals, and repair/repeat-order categories to cut licensing turnaround time
A bilateral framework to "streamline" defence trade fits this broader Indian policy trend of simplifying export licensing and creating faster approval pathways for trusted partner countries, of which Australia — a fellow Quad member and Wassenaar/MTCR partner — is a natural candidate.
Mutual Logistics Support Arrangement (MLSA) and Reciprocal Defence Access
India and Australia concluded a Mutual Logistics Support Arrangement in 2020, permitting reciprocal access to designated military facilities for refuelling, repair, and replenishment of both countries' armed forces. This is part of a network of similar reciprocal logistics agreements India has signed with key partners to enable interoperability without a mutual-defence treaty commitment.
Key Details
- India's comparable logistics agreements: LEMOA with the United States (2016), similar arrangements with France, Singapore, Japan, and Russia
- Such arrangements are distinct from mutual-defence treaties (like NATO's Article 5) — they facilitate logistics access and cost-sharing during port calls, exercises, and humanitarian missions, not automatic military assistance obligations
- India-Australia defence engagement also includes the annual bilateral maritime exercise AUSINDEX and Australia's participation in the Malabar naval exercise since 2020
Streamlining "trade and services" in defence complements existing logistics-access arrangements like the MLSA by easing the commercial and industrial side — spares, maintenance contracts, and technology transfer — that logistics arrangements alone do not cover.
India's Defence Production and Export Promotion Policy (DPEPP) and the Export Push
The Ministry of Defence's Defence Production and Export Promotion Policy (DPEPP), first issued in draft in 2020, set targets for India's transition from a leading arms importer toward a defence manufacturing and export hub, using Positive Indigenisation Lists and Strategic Partnership models for private-sector participation.
Key Details
- India's defence exports reached a record ₹23,622 crore in FY 2024-25, up 12.04% over FY 2023-24 (₹21,083 crore), reaching around 80 countries
- Defence production crossed ₹1.27 lakh crore in FY 2023-24; the government's revised target is ₹3 lakh crore in production and ₹50,000 crore in exports by 2029
- Private industry contributed the larger share of FY 2024-25 exports (₹15,233 crore) compared to Defence Public Sector Undertakings (₹8,389 crore), though DPSU exports grew faster (42.85%)
A dedicated framework with Australia to ease defence trade friction supports DPEPP's export-promotion goals by opening a developed-country market — beyond the Global South buyers (Philippines, African and Latin American states) that have dominated India's defence exports so far.
- India-Australia Comprehensive Strategic Partnership established: 4 June 2020 (elevated from the 2009 Strategic Partnership)
- Mutual Logistics Support Arrangement (India-Australia) concluded: 2020
- India joined the Missile Technology Control Regime: 27 June 2016 (35th member)
- India's record defence exports: ₹23,622 crore in FY 2024-25 (12.04% growth over FY 2023-24)
- Defence production: ₹1.27 lakh crore (FY 2023-24); target ₹3 lakh crore production and ₹50,000 crore exports by 2029
- DDP (Department of Defence Production) is the licensing authority for SCOMET Category 6 (military goods) exports