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Contents
Source: The post is based on the article “MoD bans imports from 18 top defence platforms, items to be made in India” published in Business Standard on 23rd July 2022.
What is the News?
The Ministry of Defence has till now released three positive indigenisation lists comprising major equipment/platforms that can no longer be imported.
What is a Positive Indigenisation List?
The positive indigenisation list essentially means that the Armed Forces—Army, Navy, and Air Force—will only procure the listed items from domestic manufacturers. The manufacturers could be private sector players or Defence Public Sector Undertakings(DPSUs).
What is the significance of this list?
Promote Domestic Industry: These weapons & platforms will promote domestic industry and transform R&D and manufacturing in the country.
Reduced Fiscal Deficit: The other benefits of indigenisation will be reduction in the fiscal deficit, security against its porous borders and hostile neighbors and generation of employment.
What are the steps undertaken by India to boost Domestic Defence manufacturing?
In the Union Budget 2022-23, the Finance Minister has allocated 25% of the defence R&D budget for industry-led R&D.
