Defence ministry's third negative import list prohibits import of another 101 items

The Defence Ministry on Thursday released the third negative import list prohibiting the import of 101 military equipment over the next five years aiming to give a boost to domestic engineering and manufacturing sectors.

As a consequence, more than Rs 2,10,000 crore worth of orders are likely to be placed in Indian Industry in the next five to seven years.

This comes in the wake of the first such list with 101 items that came in 2020 and the second list (108) in 2021 aiming to boost the domestic defence manufacturing sector.

The third list comprises highly complex systems, sensors, weapons and ammunition ranging from lightweight tanks and mounted artillery gun systems to MFStar radar for ships, advanced lightweight torpedo and loitering munition.

The spirit behind issuing these lists comprising 310 defence equipment reflected the government’s growing confidence in the capabilities of the domestic industry that they could supply equipment of international standards to meet the demand of the armed forces, Defence Minister Rajnath Singh said releasing the list.

Since the notification of the first and second lists, contracts for 31 projects worth Rs 53,839 crore have been signed by the armed forces. The defence ministry has accorded acceptance of necessity (AoNs) approval for 83 projects worth Rs 1.77 crore whereas cases worth Rs 2.94 crore will be progressed in the next five to seven years.

India is the world’s second-biggest importer of arms with an estimate showing that the armed forces are projected to spend around $130 billion (approx. Rs 9.88 lakh crore) in capital procurement over the next five years.

With the government keen on reducing the import bills, an added emphasis is being given to spruce up the indigenous defence manufacturing capacity with the defence ministry setting a goal of achieving a turnover of $ 25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years which includes an export target of $ 5 billion (Rs 35,000 crore) worth of military hardware.

This year 68% of the defence capital procurement has been earmarked for domestic procurement.

The Defence Research and Development Organisation too, pitched in to strengthen local manufacturing with the agency signing 30 Transfer of Technology agreements with 25 industries. The minister handed over the agreements pertaining to 21 technologies developed by 16 DRDO laboratories.

“The third positive indigenisation list comes at a strategically important time. Given the current geopolitical scenario, the importance of being self-reliant in defence production is more apparent than ever and the industry is well poised to manufacture the 101 items indigenously and enhance the operational readiness of our forces,” commented SP Shukla, president, Society of Indian Defence Manufacturers.