The Ministry of Defence is about to release the third positive indigenization list, which will be a crucial step in achieving the ‘Aatmanirbhar Bharat’ initiative. The third list will include important equipment/platforms that are slated to be indigenised by December 2025. The complete list will be released by Raksha Mantri Shri Rajnath Singh on April 07, 2022, in New Delhi.
This third list expands on the 101-item first list and the 108-item second list, which were released on August 21, 2020, and May 31, 2021, respectively. Indigenisation is the ability to develop and produce any type of defence equipment within one’s country for dual purposes: achieving self-sufficiency and also for lowering import costs.
India is one of the world’s largest arms importers. The armed forces spending is projected at around USD 130 billion on defence purchases for the next five years. Prime Minister Narendra Modi while addressing a post-Budget webinar on ‘Aatmnirbharta in Defence – Call to Action’ which was organised by the Ministry of Defence that,
“This year’s Budget has a blueprint for developing a vibrant ecosystem, from research, design and development to manufacturing, within the country.”
Finance Minister Nirmala Sitharaman had previously announced in the Budget speech that for the financial year 2022-23: defence R&D will be opened up for industry, start-ups and academia. She also stated that 25% of the defence R&D budget has been marked for this purpose.
Developments made so far
So far, the Defense Ministry has issued two positive indigenisation lists of things that can only be purchased in the country. More than 200 defence platforms and equipment are included. Domestic procurement contracts of 54,000 crores have been inked. While the acquisition of equipment worth more than 4.5 lakh crore is in various stages.
Institutes like Defence Research and Development Organization (DRDO), Defence Public Sector Undertakings (DPSUs), and even several private companies are all helping to indigenize the defence industry. PIB has reported that the third list will build upon the first list of 101 items and the second list of 108 items that were promulgated on August 21, 2020, and May 31, 2021, respectively.
While the major items in the first list were: 155mm/39 Cal Ultra-Light Howitzer, Light Combat Aircraft (LCA) Mk-IA which includes Enhanced Indigenised Content, Conventional Submarines and Communication Satellites GSAT-7C.
In the second list, major items were: Next Generation Corvette, Land-Based MRSAM Weapon System, Smart Anti-Field Weapon System (SAAW) Mk-I, Onboard Oxygen Generation System (OBOGS) based integrated life support system for fighter aircraft and 1000HP Engine for Tank (T-72).
The third list is projected to have more than 100 complex equipment and systems that are being developed and are likely to be included in the procurement and orderings of the next five years. Orders worth more than Rs 2,10,000 crore are expected to be placed in the next five years as part of the goods listed in the third list.
Over 300 sophisticated products will be covered as notified ranging from intricate armament systems to crucial platforms like armoured vehicles, combat planes, submarines, and so on. According to the latest SIPRI study, Indian arms imports declined by 21% between 2012-16 and 2017-21.
The defence ministry in line with the government’s “Make in India” programme recently notified the cancellation of nine major international arms deals amounting to Rs 46,695 crore. In the last three years, spending on international procurement has decreased from 46 per cent to 36 per cent.
The Armed Forces have inked contracts for 31 projects worth Rs 53,839 crore. While Acceptance of Necessity (AoNs) for 83 projects worth Rs 1,77,258 crore has been granted. In the next five to seven years, cases worth Rs 2,93,741 crore will be processed.
Published By: Apoorva Wakodikar
Edited By: Subbuthai Padma
