In a significant move towards promoting self-reliance in defence production and reducing imports, India’s Defence Public Sector Undertakings (DPSUs) have received approval for the fourth Positive Indigenisation List (PIL). The PIL includes 928 strategically-important Line Replacement Units (LRUs), sub-systems, spares, and components, with an import substitution value of approximately Rs 715 crore. This initiative aligns with India’s vision of ‘Atma Nirbharta’ (self-reliance) and aims to enhance the domestic defence industry, promote investment, and reduce dependency on imports.
Understanding the Positive Indigenisation List (PIL)
The Positive Indigenisation List concept means that the Indian Armed Forces will exclusively source the listed items from domestic manufacturers. These include entities in the private sector or DPSUs. The fourth PIL follows three previous PILs published in December 2021, March 2022, and August 2022. So far, 310 items have been successfully indigenised.
Indigenisation and In-house Development
To achieve indigenisation, DPSUs will use different routes under the ‘Make’ category, focusing on in-house development through Micro, Small, and Medium Enterprises (MSMEs) and the private Indian industry. This approach is expected to boost the economy, encourage investment in the defence sector and foster the growth of design capabilities within the domestic defence industry by involving academia and research institutions.
Procurement and Industry Participation
The DPSUs are set to initiate procurement action for the items listed in the fourth PIL, facilitated by the specifically designed Srijan Portal Dashboard.
Status of Indigenisation of the Defence Sector in India
Despite an 11% drop in arms imports between 2013-17 and 2018-22, India remains the world’s top importer of military hardware in 2022, according to a report by the Stockholm International Peace Research Institute (SIPRI). The defence ministry has set a USD 25 billion turnover goal in defence manufacturing in the next five years, including a USD 5 billion export target.
Government Initiatives for Indigenisation
The Defense Acquisition Procedure (DAP)-2020 gives priority to the procurement of capital items from domestic sources. The FDI policy allows for 74% FDI under the automatic route in the defence industry and up to 100% through the Government route wherever it is likely to result in access to modern technology.
Mission DefSpace promotes defence-related innovations and developments in the space sector. The iDEX scheme fosters startups and MSMEs in defence innovation projects. Two Defense Industrial Corridors have been established in Uttar Pradesh and Tamil Nadu, focusing on developing defence manufacturing ecosystems and attracting investments.
Examples of Indigenous Defense Arsenal in India
Several examples of indigenous defense arsenal include the Tejas Aircraft, Arjun Tank, NETRA, ASTRA, LCH ‘Prachand’, and ICG ALH Squadrons.
Challenges in Defence Indigenisation
Key challenges include developing cutting-edge defence technologies, acquiring advanced capabilities, building a robust defence industrial base and infrastructure, and ensuring the quality, reliability, and safety of indigenously developed defense systems.
Proposed Way Forward
There is a need to create a Defense Innovation Ecosystem, establish defense technology accelerators, and develop Defence Skilling and Training Programs.
UPSC Civil Services Examination, Previous Year Question (PYQ)
Prelims Q. In the context of the Indian defense, what is ‘Dhruv’? (2008)
(a) Aircraft-carrying warship
(b) Missile-carrying submarine
(c) Advanced light helicopter
(d) Intercontinental ballistic missile
Ans: (c)
Mains Q. What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (2020)
Q. How is S-400 air defence system technically superior to any other system presently available in the world? (2021)
Source: PIB
