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MANUFACTURING OF DEFENCE EQUIPMENT

India - Press Information Bureau

Ministry of Defence

Posted On: 04 FEB 2022 6:00PM by PIB Delhi

In continuous pursuit of self reliance in defence manufacturing and to minimise import by DPSUs, the Government has notified a Positive Indigenisation list of sub-systems/assemblies/sub-assemblies/ components on 27th December 2021. The list contains 2,500 items which are already indigenised, and another 351 items for which there would be an embargo on imports beyond the timelines indicated against them. Addition of items in Positive Indigenisation List is a continuous activity which depends on the level of capabilities created in Indian Defence Industry.

In order to make India a global defence manufacturing hub, the Government has taken several policy initiatives in past few years under 'Make in India' programme and brought reforms to encourage indigenous design, development and manufacture of defence equipment in the country, thereby reducing dependency on imports in coming years. These initiatives, inter-alia, include according priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP) 2020; Notification of two 'Positive Indigenisation Lists' of total 209 items of Services and one 'Positive Indigenisation List' of total 2,851 items of DPSUs, for which there would be an embargo on the import beyond the timelines indicated against them; Simplification of Industrial licensing process with longer validity period; Liberalisation of FDI policy allowing 74% FDI under automatic route; Simplification of Make Procedure; Launch of Innovations for Defence Excellence (iDEX) scheme involving startups and MSMEs; Implementation of "Public Procurement (Preference to Make in India), Order 2017; Launch of an indigenization portal namely SRIJAN to facilitate indigenisation by Indian Industry including MSMEs; Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers; Establishment of two Defence Industrial Corridors one each in Uttar Pradesh and Tamil Nadu. The initiatives taken by the Government have resulted in enhancing the budget for Capital procurement through indigenous sources to 64% in the year 2020-21.

Government has issued 556 numbers of licenses till December 2021 to Indian companies for manufacturing of defence items. Further, 266 vendors have shown interest for indigenisation of items uploaded on the SRIJAN portal.

This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Sanjay Sadashivrao Mandlik and others in Lok Sabha on February 04, 2022.

ABB/Savvy

(Release ID: 1795533)