3rd Positive Indigenisation List for Defence Equipment soon: Modi

Vishal Thapar Feb 25, 2022

A third Positive Indigenisation List for Defence equipment will be promulgated soon to reinforce the agenda for self-reliance, Prime Minister Narendra Modi announced in a webinar with Industry honchos on February 25.

Through two previous Positive Indigenisation Lists issued in August 2020 and May 2021, the Modi Government has already declared its intention to bar in a staggered manner the import of 209 types of military equipment. This includes platforms and weapon systems like submarines, naval corvettes, light helicopters, transport aircraft, wheeled armoured platforms, artillery guns, Medium Range Surface-to-Air Missiles (MRSAM) and mini-UAVs.

The Prime Minister was addressing Industry captains as a follow-up to the Budgetary announcements for 2022-23, and meant to action the intent to rapidly scale up domestic production of military equipment. The webinar, organized by the Ministry of Defence, was titled ‘Aatmanirbharta in Defence: Call to Action’.

“The Union Budget lays down the blueprint for a vibrant eco-system for Defence production. The Budget earmarks almost 70 per cent of the Capital expenditure on Defence for domestic industry,” Modi said in his inaugural remarks.

“Over 200 platforms and types of equipment are already on the Positive Indigenisation List for domestic procurement. Contracts worth Rs 54,000 Crore have been signed with Indian Industry and procurement worth Rs 4,50,000 Crore is in the pipeline. Soon, a third Indigenisation List will also be issued,” the Prime Minister said.

The Rs 5,25,166.15 Crore ($70.3 Billion) Defence budget, of which 1,52,396.61 Crore ($20.4 Billion) is the Capital allocation for modernisation, represents a continuity in efforts by the Modi Government for a military build-up powered by a domestic Defence Industrial complex.

Sixty-eight per cent of the Rs 1,35,192.9 Crore outlay for the Indian Air Force, Navy and Army is Rs 91,931.17 Crore, which is the business assurance for Make in India this year.

The Make in India drive has been stepped up in the last few months through policy reinforcements ring-fencing most of the Defence spending for the Indian market and even foreclosing multiple ongoing procurement programmes through the import route.

These measures also reflected the impatience of the Prime Minister with the pace of the indigenization efforts. It is clear from the series of decisions that the Prime Minister is personally invested in building up a viable and reliable Defence Industrial complex.

Continuing his strong pitch for Aatmanirbharta (self-reliance), Prime Minister Modi in his address to Industry said there could be no assured security unless weapons are produced within the country. “The basic principle of security is that Defence equipment be unique and customized for our armed forces. Only then is it useful. You can have uniqueness and the element of surprise only when weapons are produced within the nation,” he said.

Modi reasoned on the inconvenience of import-dependency. “Earlier, in imports, there were allegations of corruption. Corporate rivalry drives campaigns which create doubts and open doors for corruption. Confusion is created in a planned way. Atmanirbharta is the solution to such problems,” he said.

Another reason proffered by the Prime Minister was that the process for importing weapons took so long that by the time these were made available to the armed forces, these were outdated, given the very fast pace of obsolescence. He also urged leveraging India’s IT capacities for Defence for assurance in military preparedness.

Modi also expressed the view that the confidence and morale of soldiers is boosted when good weapons are made in India. “We must respect the sentiment of soldiers who take pride in weapons made in India,” he said.

Lauding India’s armed forces for supporting the self-reliance agenda, the Prime Minister said Industry should not lose opportunity created by the forces being completely on board.

Modi also made an emotional appeal to Industry for supporting the indigenization drive in Defence. “Here, profits should not be the primary consideration. This is a patriotic endeavour. It’s national service. The first consideration should be how you can make the nation strong,” he urged.

The Prime Minister made a mention of the corporatization of government-owned Ordnance Factories as a symbol of the resolve of the Government to make Make in India in Defence production work. “The seven new Defence PSUs are fast expanding business and entering new markets,” he said, while also highlighting the increase in Defence exports by six times since his Government took office seven years ago.