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Contents
What is the News?
The Defense Minister has released the third Positive Indigenisation List.
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 Defense Public Sector Undertakings(DPSUs).
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What does the third Positive Indigenisation List contain?
The third positive indigenisation contains 101 equipment and platforms, which the Services can procure only from the domestic industry.
This list follows the issue of the first list (101) and second list (108) that were promulgated in 2020 and 2021 respectively.
The third list includes items such as naval utility helicopters, light tanks, small Unmanned Aerial Vehicles, and anti-ship missiles among others.
These weapons and platforms are planned to be indigenised progressively with effect from December 2022 to December 2027.
What is the significance of this Positive Indigenisation List?
Firstly, it is likely to stimulate the potential of indigenous Research & Development (R&D) by attracting fresh investment into technology and manufacturing capabilities.
Secondly, it will provide ample opportunities to the domestic industry for understanding the trends and future needs of the Armed Forces.
What are the measures taken by the Government to maximize the participation of domestic industry?
Around 68% of the capital procurement budget has been earmarked for domestic procurement to promote self-reliance & reduce import dependency.
The government is keeping 25% of the defence R&D budget for the industry, start-ups and academia and the corporatisation of the Ordnance Factory Board.
Source: This post is based on the article “Landmark policy decision to indigenise 101 more weapons and platforms to speed up ‘Atma Nirbharta’ in Defence” published in PIB on 7th April 2022.
