Government eases export rules for dual-use goods to foreign subsidiaries in 41 countries

New rules aim to facilitate smoother transfers of sensitive technology and software from Indian parent companies to overseas subsidiaries under the SCOMET policy

October 8, 2024

Dual-use items with industrial and military applications will now be easier to transfer to foreign subsidiaries in 41 countries, including Russia, the UK, and the US

The Directorate General of Foreign Trade (DGFT) announced an expanded list of items under the Global Authorisation for Intra-Company Transfer (GAICT) policy

Newly liberalised items include source code for hybrid integrated systems, equipment for gas turbine engine components, and Counter Improvised Explosive Device (IED) technology

The changes also cover materials for absorbing electromagnetic radiation, intrinsically conductive polymers, and specific laminates

The Indian government has eased export regulations for 36 dual-use goods, facilitating smoother transfers of software and technology from Indian parent companies to their subsidiaries in 41 countries. This change, announced on Tuesday, falls under the Global Authorisation for Intra-Company Transfer (GAICT) policy and is part of the SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) framework, which governs products with both industrial and military applications.

The Directorate General of Foreign Trade (DGFT) released a public notice detailing the expansion of items covered under the GAICT policy. The revised list of products now eligible for simplified intra-company transfers includes key technologies such as source code for hybrid integrated systems, processing equipment for gas turbine engine components, and equipment related to Counter Improvised Explosive Devices (IEDs).

Other newly liberalised items include towed acoustic hydrophone arrays, materials designed for absorbing electromagnetic radiation, intrinsically conductive polymers, and specific types of laminates. These changes aim to facilitate the seamless export of sensitive technologies and materials, reducing the bureaucratic hurdles for Indian companies operating in global markets.

The policy update affects key countries such as Russia, the UK, and the US, with the government prioritising a streamlined approach to export regulations. The DGFT also confirmed that the Handbook of Procedures 2023 has been amended immediately to accommodate the updated export rules.

By easing these restrictions, the government hopes to promote the transfer of critical technologies while maintaining strict oversight of goods that could have dual industrial and military uses.

Source: Economic Times

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