Positive Indigenisation list: More defence systems to be locally manufactured

What is the News?

The Ministry of Defence has notified a third positive indigenisation list that will be substituted in the next three years.

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 list contains 2,500 subsystems and components that have been localised and another 351 imported items to be substituted in the next three years.

The curbs on the import of 351 items which includes components such as a missile approach warning sensor, shells, propellants, electrical parts, missile containers, a torpedo tube launcher and a gunfire control system will start over the next three years.

What are the other measures undertaken to boost Domestic Defense manufacturing?

In May 2020, the foreign direct investment (FDI) limit under the automatic route in the defence sector was hiked from 49% to 74%.

In October 2021 the government dissolved the four-decade-old Ordnance Factory Board (OFB) and amalgamated 41 factories under seven new state-owned companies to manufacture defence hardware ranging from munitions to heavy weapons and vehicles.

India has inaugurated two defence industrial corridors, one in Tamil Nadu and the other in Uttar Pradesh, to boost the flagship “Make in India” programme that in turn would attract investment as well as encourage employment generation.

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Source: This post is based on the article ‘More defence systems to be locally manufactured’ published in The Hindu on 30th Dec 2021.