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Aatmanirbhar Bharat – Defence Indigenisation: Union Minister Rajnath Singh approved the 3rd Positive List as part of the Indigenisation of the Indian Defence Sector under the ‘Atmanirbhar Bharat Abhiyan’. The latest announcement confirmed the Indigenisation of 780 key defence equipment which will now be produced by Defence Public Sector Undertakings (DPSUs). The official statement issued by the Defence Ministry in this regard notes that the decision is aimed at reducing the imports by state-owned while promoting self-reliance in defence manufacturing and the overall defence sector.
Raksha Mantri Shri @rajnathsingh has approved the third Positive Indigenisation List (PIL) of 780 strategically important Line LRUs/Sub-systems/Components with a timeline beyond which they will only be procured from the domestic industry. pic.twitter.com/mMF9cZ6ijk
— रक्षा मंत्री कार्यालय/ RMO India (@DefenceMinIndia)
August 28, 2022
The 3rd Positive List for Defence Indigenisation Plan outlines nearly 780 strategically important products, including Line Replacement Units (LRUs)/Sub-systems/Components; which will now be procured only from the Indian Industry. The central premise behind the Indigenisation of the Indian Defence Sector is to achieve self-reliance in the defence sector.
The official statement issued by the Ministry of Defence notes that “This list is in continuation to the two PILs of LRUs, sub-systems, assemblies, sub-assemblies and components that were published in December 2021 and March 2022. These lists contain 2,500 items which are already indigenised and 458 (351+107) items which will be indigenised within the given timelines.” As per the Defence Ministry statement, of the total 458 items set aside for indigenisation, 167 items (1st PIL -163, 2nd PIL – 4) have been indigenised, so far.
What is the Indigenisation Of Indian Defence?
The term Indigenisation refers to the ability of any country to develop and produce the required machinery using local technology, resources and talent. In terms of defence sector indigenisation, the central government is planning to develop the in-house capability of developing and producing any defence equipment that is required by its armed forces. This move aimed at reducing imports while also achieving self-reliance in the sector. The process of Indigenisation of manufacturing of defence equipment will involve designing, developing and manufacturing different types of equipment indigenously.
Reason for Indigenisation Of Indian Defence
Self-Defence and Strategic Importance: The current geopolitical situation requires that India looks after its own need and reduce its dependence on foreign powers for defence-related requirements. Indigenisation of the Defence Sector will help boost India’s self-defence and preparedness while also making its geopolitical stance stronger in the region.
Reduce Import Bill: The Stockholm International Peace Research Institute (SIPRI) report claims that India is the 2nd largest defence importer in the world. The country currently imports about 9.5% of the global total which has led to an increase of 3.1 in India’s Defence Budget. Indigenisation of the Defence sector with local manufacturing of arms and ammunition will significantly reduce costs while also improving the country’s ability to reduce reliance on foreign suppliers.
Control Economic Drain: Currently, India spends about 3% of its GDP ondefence,of which 60% is allocated to imports of defence materials and equipment. Indigenisation will help curb this economic drain and lead to wealth creation within the country.
As part of the ongoing Defence Indigenisation plan, the government plans to manufacture defence equipment of strategic importance including Light Tanks, Helicopters, and Unmanned Aerial Vehicles in the country. The Defence Ministry has set a target of Rs 1.75 lakh crore of defence production by 2025, which will include export of Rs 35,000 crore. To achieve this target, two dedicated defence industrial corridors have been established — one each in Uttar Pradesh and Tamil Nadu.
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