• The defence ministry has approved a fresh list of military items, including line replacement units, sub-systems and spares, which will only be procured from the domestic industry after a ban on their import kicks in under a staggered time-line of around five-and-half years.

• It is the fourth such ‘positive indigenisation list’ comprising items used for various military platforms, equipment and weapons.

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

• The aim of the indigenisation list is also to minimise imports by the defence public sector undertakings (DPSUs).

Positive Indigenisation Lists

• India is one of the largest importers of arms globally.

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

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

• The government 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 worth of military hardware.

• One of the key constituents of the government’s ‘Aatmanirbhar Bharat Abhiyan’ is to transform the defence sector to achieve self-reliance and boost the export of defence items with active participation of public and private sector.

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

• The defence ministry had earlier promulgated ‘first, second and third Positive Indigenisation Lists’ on August 21, 2020, May 31, 2021 and April 7, 2022 respectively.

• All the items included in the lists will be procured from indigenous sources as per provisions given in Defence Acquisition Procedure (DAP) 2020. 

• This list provides continuous impetus towards self-reliance in defence.

• The Defence Public Sector Undertakings (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.

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

• The fourth list has been prepared by the ministry after several rounds of consultations with three services and all stakeholders. 

• It lays special focus on equipment/systems, which are being developed and likely to translate into firm orders in the next five to 10 years. 

• Like the first three lists, import substitution of ammunition which is a recurring requirement has been given special focus. This fourth list recognises the growing capacity and capabilities of the Indian defence industry and is likely to stimulate the potential of domestic research & development by attracting fresh investment into technology and manufacturing capabilities.

• The items listed in the fourth list will provide ample visibility and opportunity to the domestic defence industry for understanding the trend and futuristic needs of the armed forces and create requisite R&D and manufacturing capacity within the country.

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