• Defence Minister Rajnath Singh released the third list of over 101 military systems and weapons that will come under an import ban over the next five years and be developed indigenously.

• The list includes naval utility helicopters, lightweight tanks, submarine-launched cruise missiles, naval anti-drone systems, battlefield surveillance radars and artillery gun systems.

• It also comprised Next Generation Offshore Patrol Vessels (NGOPV), MF Star radars for ships, Medium-Range Anti-Ship Missiles, advanced lightweight torpedoes, high endurance autonomous underwater vehicles, Medium Altitude Long Endurance Unmanned Aerial Vehicles and loitering munitions.

• These items are planned to be indigenised with effect from December 2022 to December 2027. These will, henceforth, be procured from local sources as per provisions of Defence Acquisition Procedure (DAP) 2020.

• Stressing on domestic production of ammunition as it ensures uninterrupted supply during wars, Rajnath Singh appreciated the fact that full attention has been paid to the import substitution of ammunition in the first two positive indigenisation lists.

• The first “positive indigenisation list” of 101 items that included towed artillery guns, short-range surface-to-air missiles, cruise missiles and offshore patrol vessels was issued in August 2020.

• In May 2021, the government approved restrictions on the import of an additional 108 military weapons and systems such as next-generation corvettes, airborne early warning systems, tank engines and radars under a staggered timeline of four-and-half years.

• This third list has been prepared after in-depth consultations with all stakeholders, such as Defence Research & Development Organisation (DRDO), Department of Defence Production (DDP), Service Headquarters (SHQs) and the private industry. 

What is the significance of this move?

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

• Two important objectives of the government are self-reliance in the defence sector, and promoting exports of military equipment. The release of this list will encourage indigenisation with the participation of public and private sector.

• The spirit behind issuing these three lists comprising 310 defence equipment, slated to be manufactured locally, reflects growing confidence of the government in the capabilities of domestic industry that they can supply equipment of international standards to meet the demand of the Armed Forces.

• According to estimates, the Indian armed forces are projected to spend around $130 billion in capital procurement over the next five 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 $25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years which includes an export target of $5 billion (Rs 35,000 crore) worth of military hardware. 

• Rajnath Singh said that 68 per cent of the capital procurement budget has been earmarked for domestic procurement to promote self-reliance and  reduce import dependency. The other measures include earmarking 25 per cent of defence R&D budget for the industry, startups and academia and corporatisation of Ordnance Factory Board.

• When orders for defence items are given to the domestic defence industry, it provides employment to lakhs of people working in MSMEs connected to the sector, spread across the country.

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