In the defence sector, India has long sought self-reliance, a crucial component of effective defence capability and efforts have yielded results as well. In continuous pursuit to prove its mettle as a rising defence manufacturing hub, and to minimise imports by Defence Public Sector Undertakings (DPSUs) under ‘Atmanirbhar Bharat Abhiyan’, Defence Minister Rajnath Singh has approved the third Positive Indigenisation List (PIL) of 780 strategically important Line Replacement Units (LRUs)/Sub-systems/Components with a timeline beyond which they will only be procured from the domestic industry.

A Step Towards ‘Atmanirbhar Bharat’

Concerted efforts have been put by the Government of India by way of policy interventions to encourage indigenous design, development, and manufacture of defence equipment. It is pertinent to note that these projects are aimed at reducing import dependence on DPSUs; harnessing the design capabilities of the domestic defence industry; and positioning India as a design leader in these technologies. According to the Ministry of Defence, details of the items are available on SROJAN Portal (www.srijandefence.gov.in). These items will only be procured from Indian Industry after the timelines indicated in the list.

This list is in continuation of the two PILs of LRUs/Sub-systems/Assemblies/Sub-assemblies/Components that were published in December 2021 and March 2022. These lists contain 2,500 items which are already stated to be procured only from the Indian industry and 458 (351+107) items which will be indigenised within the given timelines. Out of 458, 167 items (1st PIL -163, 2nd PIL – 4) have been indigenised, so far.

The Process Undertaken

According to the press release of the Ministry of Defence, the indigenisation of these items will be taken up through different routes under the ‘Make’ category. This prime objective of the ‘Make’ category is to achieve self-reliance by involving greater participation in the Indian industry. Projects involving the design and development of equipment, systems, major platforms or upgrades thereof by the industry can be taken up under this category.

The DPSUs will soon float Expression of Interest (EoIs)/Request for Proposal (RFPs) and the industry may come forward to participate in a large number. The industry may look for EoIs/RFPs on the Srijan dashboard (https://srijandefence.gov.in/DashboardForPublic) specifically designed for the purpose.

It is worth mentioning that strategic defence products including Light Tanks, Helicopters, and Unmanned Aerial Vehicles are part of the indigenous list for which there would be an embargo on the import beyond the timelines indicated against them.

Further, two defence industrial corridors have been established — one each in Uttar Pradesh and Tamil Nadu to bolster indigenous manufacturing.

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. The major role in achieving this goal with a contribution of 70-80% would be done by India’s Defence Public Sector Undertakings (PSUs).