India’s Fifth Indigenisation List Boosts Domestic Defence Manufacturing

India has announced a fresh list of 346 military hardware items that will only be procured from state-run domestic manufacturers after a ban on their import kicks in under a staggered timeline. This is part of a broader initiative to boost domestic defence industries and reduce import dependence.

Key Highlights

Fifth Positive Indigenisation List

The latest list comprises 346 items, including strategically important systems and weapons.

Indigenisation Efforts

Over 12,300 items have been indigenised in the past three years.

Value of Import Substitution

The indigenisation of these 346 items is worth Rs 1,048 crore.

Production and Development

The items will be produced by Defence Public Sector Undertakings (DPSUs) through various routes, including in-house development.

Economic Impact

Boost to Economy

The initiative aims to enhance investment in defence and reduce import dependence.

Design Capabilities

It will augment the design capabilities of the domestic defence industry through the involvement of academia and research institutions.

Previous Lists and Achievements

Earlier Positive Indigenisation Lists

Four previous lists comprising 4,666 items have already seen the indigenisation of 2,972 items worth Rs 3,400 crore.

Overall Indigenisation Goal

The five lists for DPSUs are in addition to five positive indigenisation lists of 509 items notified by the Department of Military Affairs.

Government’s Vision

Future Spending and Targets

Indian armed forces are projected to spend around USD 130 billion in capital procurement over the next five-six years. The government aims to achieve a turnover of USD 25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years.

Export Goals

The government plans to increase the exports of military hardware to Rs 50,000 crore by 2028-29 from the current Rs 21,083 crore.