Defence Minister to release third positive indigenisation list on Thursday

In a major push towards defence indigenisation, Rajnath Singh will on Thursday unveil 3rd list of over 100 military systems and weapons that will be put under import restrictions

In a major push towards defence indigenisation, Defence Minister Rajnath Singh will on Thursday unveil the third list of over 100 military systems and weapons that will be put under import restrictions under a staggered timeline of over three-and-a-half years.

The defence ministry said orders worth more than Rs 2,10,000 crore are likely to be placed on the Indian industry in the next five years as part of the items covered in the third list.

It said the list will comprise major equipment and platforms which are scheduled to be "completely indigenised" by December 2025.

The first "positive indigenisation" list of 101 items that included towed artillery guns, short-range surface-to-air missiles, cruise missiles and offshore patrol vessels was issued in August 2020.

In May last year, the government approved restrictions on the import of an additional 108 military weapons and systems such as next-generation corvettes, airborne early warning systems, tank engines and radars under a staggered timeline of four-and-half years.

"The third list will consist of over 100 items, including complex equipment and systems which are being developed and likely to translate into firm orders over the next five years.

"Orders worth more than Rs 2,10,000 crore are likely to be placed on the Industry in the next five years as part of the items covered in the third list," it said.

After unveiling of the third list, over 300 sophisticated items will be covered, ranging from complex weapon systems to critical platforms such as armoured vehicles, combat aircraft and submarines that will not be allowed to import under a specified timeline.

"Since the notification of the first and second lists, contracts for 31 projects worth Rs 53,839 crore have been signed by the armed forces. The Acceptance of Necessity (AoNs) for 83 projects worth Rs 1,77,258 crore have been accorded," the ministry said in a statement.

In addition, cases worth Rs 2,93,741 crore will be progressed in the next five-seven years, it said.

The ministry said the third list is a major initiative to achieve self-reliance in defence manufacturing and shows the growing confidence of the government in the domestic industry that they can create and supply equipment of international standards to meet the demand of the armed forces.

"The aim of 'Aatmanirbhar Bharat' as envisioned by Prime Minister Narendra Modi is to achieve sustained security, essential for a sovereign nation, without relying on imports from other countries," the ministry said.

"The objective is to build the domestic industry in order to make India a defence manufacturing hub which not only caters to the domestic needs but also fulfils international requirements," it said.

In the last few years, the government has taken a series of measures to promote domestic defence production.

India is one of the largest importers of arms globally. According to estimates, the Indian armed forces are projected to spend around USD 130 billion (one billion is equal to 100 crores) in capital procurement in the next five years.

The government now wants to reduce dependence on imported military platforms and has decided to support domestic defence manufacturing.

The defence ministry has set a goal of a turnover of USD 25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years that including an export target of USD 5 billion (Rs 35,000 crore) worth of military hardware.