Government gives nod to fourth positive indigenisation list, encourages domestic defence industry

A fresh list of 928 components and subsystems has been approved by the Defence Ministry which will only be procured from domestic industry. This step is taken to promote self-reliance in the defence manufacturing sector.

It is the fourth such "positive indigenisation list (PIL)" comprising line replacement units, sub-systems and components used for various military platforms, equipment and weapons.

"To promote 'Aatmanirbharta' in defence and minimise imports by defence public sector undertakings, the Ministry of Defence has approved fourth Positive Indigenisation List (PIL) of 928 strategically-important line replacement units/sub-systems/spares and components, including high-end materials and spares, with import substitution value worth Rs 715 crore," the ministry said in a statement.

This step is to reduce imports by the defence public sector undertakings (DPSUs).

The Defence Ministry has set specific timelines for import ban of the items, spanning the period from December 2023 to December 2028.

This list is in continuation to the three similar PILs that were brought out in December 2021, March 2022 and August 2022.

"These lists contain 2,500 items which are already indigenised and 1,238 (351+107+780) items which will be indigenised within the given timelines," the ministry said. Of 1,238, 310 items have been indigenised so far, it said.

As per the ministry, 262 items from the first PIL, 11 from second list and 37 from third were already indigenised.  

"The DPSUs will undertake indigenisation of these items through different routes under 'Make' category and in-house development through the capabilities of MSMEs and private Indian industry, thereby providing impetus to the growth in economy, enhanced investment in defence and reduction in import dependence of DPSUs," the ministry said.

"In addition, this will augment the design capabilities of the domestic defence industry by involving academia and research institutions," it said.

DPSUs will soon initiate the procurement action for the notified items, said the ministry.

For the last few years, the government has taken various measures to encourage domestic defence production.   

India is among the largest importers of arms globally.

It is estimated that over the next five years Indian armed forces are projected to spend around $130 billion in capital procurement.

The government has decided to encourage domestic defence manufacturing and reduce dependence on imported military platforms

The defence ministry has set a goal of a turnover of $25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years which includes an export target of $5 billion worth of military hardware.