The Ministry of Defence has notified the fifth Positive Indigenisation List (PIL) consisting 346 defence items in a major boost to Aatmanirbharta in defence production. This initiative aims to promote self-reliance in defence production and reduce imports by Defence Public Sector Undertakings (DPSUs).
Key Highlights of the Fifth Positive Indigenisation List
- Purpose and Scope: The fifth PIL comprises 346 items aimed at advancing Aatmanirbharta (self-reliance) in defence and reducing import dependence by Defence Public Sector Undertakings (DPSUs).It ensures that these items are procured exclusively from the Indian industry, including Micro, Small, and Medium Enterprises (MSMEs) and startups.Items include strategically important Line Replacement Units (LRUs), systems, sub-systems, assemblies, sub-assemblies, spares, components, and raw materials.
- Implementation: The list is available on the MoD’s Srijan portal, which provides a platform for DPSUs and service headquarters (SHQs) to offer defence items for indigenisation to private industries.DPSUs like Hindustan Aeronautics Limited (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), and others have initiated processes for issuing Expressions of Interest (EoIs) and Requests For Tender or Proposals (RFPs).
- Impact: The indigenisation of these items is expected to have an import substitution value worth Rs 1,048 crore.The initiative provides assurance to the domestic defence industry, encouraging them to develop defence products without the risk of competition from imports.
- Future Goals: The MoD aims to continue expanding the list annually up to 2025, further increasing the number of items to be indigenised.
- This incremental approach supports the long-term goal of achieving greater self-reliance in defence production.
Positive Indigenisation List
- The PIL is a list of items that can only be purchased by the Indian armed forces from domestic manufacturers, including private sector or DPSUs.
- The concept was introduced in the Defence Acquisition Procedure (DAP) 2020, focusing on import substitution for major systems, platforms, weapon systems, sensors, and munitions.
- The list includes a diverse range of items crucial for bolstering India’s defense capabilities and promoting self-reliance in the defence sector.
Progress
- The first PIL was promulgated in August 2020, followed by successive lists, bringing the total to 4,666 items.
- So far, 2,972 items, worth Rs 3,400 crore in import substitution value, have 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). These lists include highly-complex systems, sensors, weapons and ammunition.
- Over 36,000 defence items have been offered to the industry for indigenisation, with more than 12,300 items indigenised in the last three years. As a result, the DPSUs have placed orders on domestic vendors to the tune of Rs 7,572 crore.
Status of Indigenisation Defence Sector
- Rise In Exports: In FY 2023-24, defence exports reached a record Rs 21,083 crore (approx. USD 2.63 Billion), showing a 32.5% increase from the previous fiscal year.
- Over the last 10 years, there has been a 31-fold increase in defence exports compared to FY 2013-14.
- The private sector and DPSUs have contributed about 60% and 40% respectively to this growth.
- This growth is attributed to policy reforms, ‘Ease of Doing Business’ initiatives, and digital solutions provided by the Government to promote defence exports.