On July 16th, India introduced a new list of 346 military hardware items, described as "strategically important," which will exclusively be sourced from domestic state-run manufacturers. This decision follows a phased ban on imports of these items over a specified timeline. 

According to the Ministry of Defence, more than 12,300 items have been successfully indigenised in the past three years, as part of a broader initiative aimed at bolstering India's domestic defence industries. The newly announced fifth positive indigenisation list includes the 346 identified items, which will be manufactured by Defence Public Sector Undertakings (DPSUs).  

"In a significant stride towards self-reliance in defence and reducing imports by Defence Public Sector Undertakings (DPSUs), the Department of Defence Production has announced the notification of the fifth Positive Indigenisation List (PIL) comprising 346 items," the ministry stated. 

"These items encompass critical line replacement units, systems, sub-systems, assemblies, sub-assemblies, spares, components, and raw materials, with a combined import substitution value amounting to Rs 1,048 crore. They will be exclusively procured from Indian industry entities following the specified timelines for indigenisation as outlined in the list," it further elaborated. 

The Ministry highlighted that Defence Public Sector Undertakings (DPSUs) will drive the indigenisation efforts of the items listed in the fifth Positive Indigenisation List (PIL). These efforts will involve multiple approaches, including in-house development in collaboration with the industry. 

In a statement, the ministry emphasised that this initiative will stimulate economic growth by boosting investment in the defence sector by decreasing dependency on imports. Furthermore, it is expected to enhance the design capabilities of India's domestic defence industry, with contributions from academia and research institutions playing a crucial role in this advancement. 

The Ministry noted that prior to the latest fifth Positive Indigenisation List (PIL), the Department of Defence Production had previously issued four PILs encompassing a total of 4,666 items. Out of these, 2,972 items have already been successfully indigenised by Defence Public Sector Undertakings (DPSUs), representing an import substitution value amounting to Rs 3,400 crore. 

These five indigenisation lists specific to DPSUs complement an additional set of five positive indigenisation lists encompassing 509 items, which were notified by the Department of Military Affairs. These broader lists include a range of highly complex systems, sensors, weapons, and ammunition, highlighting India's concerted efforts to achieve self-sufficiency in defence production. 

In recent years, the Indian government has implemented several initiatives aimed at bolstering domestic defence production. Despite being one of the largest importers of arms globally, India is now focused on reducing its dependency on imported military platforms. The government's strategy includes significant support for indigenous defence manufacturing. 

Estimates indicate that the Indian armed forces are planning to allocate approximately USD 130 billion for capital procurement over the next five to six years. This substantial investment underscores India's commitment to modernising its armed forces while prioritising domestic manufacturing capabilities. 

The Defence Ministry has established an ambitious target of achieving a turnover of USD 25 billion (approximately Rs 1.75 lakh crore) in defence manufacturing within the next five years. This goal reflects a robust commitment to significantly expand India's capabilities in the defence sector. 

Recently, Defence Minister Rajnath Singh articulated his vision for the defence sector over the next five years, emphasising the government's concerted efforts to enhance exports of military hardware. Currently valued at Rs 21,083 crore, the aim is to elevate exports to Rs 50,000 crore by the fiscal year 2028-29. 

Image Source: Deccan Herald