India’s Defence Sector Moves Towards Self-Reliance with New Indigenisation List

The Department of Defence Production (DDP) under the Ministry of Defence has announced the fifth Positive Indigenisation List (PIL) to achieve self-reliance in the defence sector and reduce imports by Defence Public Sector Undertakings (DPSUs). This list includes 346 strategically important items such as Line Replacement Units, Systems, Sub-systems, Assemblies, Sub-assemblies, Spares, Components, and raw materials, with an estimated import substitution value of Rs 1,048 crore.

This initiative aligns with Prime Minister Narendra Modi’s vision of ‘Aatmanirbhar Bharat’ and is part of ongoing efforts led by Raksha Mantri Shri Rajnath Singh to foster self-reliance in defence production. The SRIJAN PORTAL, launched in 2020, serves as a platform for DPSUs and Service Headquarters (SHQs) to list defence items for indigenisation, targeting industries including Micro, Small, and Medium Enterprises (MSMEs) and start-ups.

The DPSUs, including Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), BEML Limited, India Optel Limited (IOL), Mazagon Dock Shipbuilders Limited (MDL), Goa Shipyard Limited (GSL), Garden Reach Shipbuilders & Engineers Ltd (GRSE), and Hindustan Shipyard Limited (HSL), will indigenise the items through various routes such as the ‘Make’ procedure or in-house development involving industry partners, including MSMEs.

This approach is expected to stimulate economic growth, enhance investment in the defence sector, and reduce import dependency. Additionally, it will boost the design capabilities of the domestic defence industry through collaboration with academia and research institutions. To facilitate this process, the DPSUs have begun issuing Expressions of Interest (EoI) and Requests for Proposal (RFP) on their websites, with links provided on the Srijan Portal Dashboard. Industry players, MSMEs, and start-ups are encouraged to participate actively.

Previously, the DDP had notified four PILs comprising 4,666 items for DPSUs, of which 2,972 items, worth Rs 3,400 crore in import substitution value, have already been indigenised. These five lists for DPSUs are in addition to the five positive indigenisation lists of 509 items notified by the Department of Military Affairs (DMA), which include highly complex systems, sensors, weapons, and ammunition. As of June 2024, DPSUs and SHQs have offered over 36,000 defence items for indigenisation, with more than 12,300 items indigenised in the last three years alone, resulting in DPSUs placing orders worth Rs 7,572 crore on domestic vendors.