India releases fresh 'positive indigenisation list' to boost domestic defence manufacturing

New Delhi: India on Tuesday announced a fresh list of 346 military hardware, including "strategically-important" systems and weapons, that will only be procured from state-run domestic manufacturers after a ban on their import kicks in under a staggered time-line.

The defence ministry said over 12,300 items have already been indigenised in last three years as part of efforts to boost domestic defence industries.

The fifth positive indigenisation list comprising 346 items has been notified and the items will be produced by the defence public sector undertakings (DPSUs), the ministry said.

"In a major boost to Aatmanirbharta in defence and minimise imports by DPSUs, the department of defence production has notified the fifth positive indigenisation list (PIL) consisting of 346 items," it said.

"These include strategically-important line replacement units/systems/sub-systems/assemblies/sub-assemblies/spares and components and raw materials, with import substitution value worth Rs 1,048 crore. The items will only be procured from the Indian Industry after the timelines of indigenisation as indicated in the list," it said.

The ministry said the DPSUs will undertake indigenisation of the items mentioned in the fifth PIL through various routes, including in-house development involving the industry.

"This will provide impetus to the growth in the economy, enhance investment in defence and lead to reduced import dependence," the ministry said in a statement.

"In addition, this will augment the design capabilities of the domestic defence Industry due to the involvement of academia and research institutions," it said.

The ministry said four PILs comprising 4,666 items were notified by the department of defence production earlier for the DPSUs, of which 2,972, having import substitution value worth Rs 3,400 crore, have already been indigenised.

These five lists for DPSUs are in addition to the five positive indigenisation lists of 509 items notified by the department of military affairs.

These lists include highly-complex systems, sensors, weapons and ammunition.

In the last few years, the government has taken a series of measures to promote domestic defence production.

India is one of the largest importers of arms globally.

According to estimates, the Indian armed forces are projected to spend around USD 130 billion in capital procurement over the next five-six years.

The government now wants to reduce dependence on imported military platforms and has decided to support domestic defence manufacturing.

The defence ministry has set a goal of a turnover of USD 25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years.

Last month, Defence Minister Rajnath Singh, outlining his vision in the defence sector for the next five years, said the government will work assiduously to increase the exports of military hardware to Rs 50,000 crore by 2028-29 from current Rs 21,083 crore.