{"id":82068,"date":"2026-08-21T18:56:32","date_gmt":"2026-08-21T13:26:32","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=82068"},"modified":"2026-08-21T18:56:52","modified_gmt":"2026-08-21T13:26:52","slug":"defence-indigenisation-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/21-08-2026\/defence-indigenisation-india","title":{"rendered":"Government Notifies New Indigenisation List"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Defence<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Ministry of Defence notified the<strong> sixth Positive Indigenisation List (PIL), <\/strong>comprising 405 items with an estimated business potential of Rs 3,070 crore.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The list is notified by the <strong>Department of Defence Production (DDP) <\/strong>and covers Line Replaceable Units (LRU), sub-systems, sub-assemblies, spares, components and raw materials for key defence platforms.\n<ul class=\"wp-block-list\">\n<li>These include Advanced Light Helicopter, Light Utility Helicopter, Chetak and Cheetah helicopters; fighter jets including the Su-30MKIs, Jaguars and MiG-29s; the Light Combat Aircraft and AL-31FP Engine.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The sixth list marks another step in the Government\u2019s efforts to promote <strong>self-reliance in defence manufacturing<\/strong> under the <strong>Aatmanirbhar Bharat initiative.\u00a0<\/strong>\n<ul class=\"wp-block-list\">\n<li>It is expected to strengthen the domestic defence manufacturing ecosystem, promote investment and innovation, and contribute to reducing dependence on imports.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>All listed items <strong>must be indigenised within a specified timeframe, <\/strong>once successfully developed locally, they will be <strong>procured exclusively from the Indian industry.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Defence Production in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India\u2019s annual defence production<\/strong> has surged to an<strong> all-time high of Rs 1.78 lakh crore in the Financial Year (FY) 2025-26. <\/strong>The milestone represents a <strong>15.6% growth over the previous fiscal year.<\/strong><\/li>\n\n\n\n<li><strong>Sectoral Contribution:<\/strong> Defence Public Sector Undertakings and other PSUs accounted for approximately<strong> 76%<\/strong> of total production, while the <strong>private sector contributed 24%.<\/strong><\/li>\n\n\n\n<li><strong>Defence Budget Growth:<\/strong> Increased from \u20b92.53 lakh crore in 2013-14 to \u20b96.81 lakh crore in 2025-26.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"e7edf1\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"371\" height=\"363\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/08\/image-183.png\" alt=\"defence indigenisation in India\" class=\"not-transparent wp-image-82069\" style=\"--dominant-color: #e7edf1; aspect-ratio:1.0220395161637468;width:371px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/08\/image-183.png 371w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/08\/image-183-300x294.png 300w\" sizes=\"auto, (max-width: 371px) 100vw, 371px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li>India is <strong>exporting defence equipment to more than 80 countries<\/strong> as of FY 2025-26.<\/li>\n\n\n\n<li><strong>Surge in Indigenous Defence Production: <\/strong>65% of defence equipment is now manufactured domestically, a significant shift from the earlier 65-70% import dependency.<\/li>\n\n\n\n<li>India targets<strong> \u20b93 lakh crore<\/strong> in defence production by <strong>2029<\/strong>, reinforcing its position as a global defence manufacturing hub.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Defence Indigenisation Reforms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strategic Autonomy &amp; National Security: <\/strong>Reduces dependence on foreign suppliers, especially during crises and geopolitical tensions.<\/li>\n\n\n\n<li><strong>Addressing Capability Gaps: <\/strong>India faces complex security challenges across borders and in the Indian Ocean Region (IOR). Modernisation is required to replace ageing platforms in the Army, Navy, and Air Force.<\/li>\n\n\n\n<li><strong>Reducing Import Bill &amp; Promoting Economic Efficiency: <\/strong>India is among the world\u2019s largest arms importers, indigenous production lowers costs in the long run, reduces foreign exchange outflow, and strengthens the domestic defence economy.<\/li>\n\n\n\n<li><strong>Boosting Domestic Defence Industrial Base: <\/strong>Indigenisation stimulates innovation and growth of DPSUs, MSMEs, and private industry.<\/li>\n\n\n\n<li><strong>Faster Procurement &amp; Operational Readiness: <\/strong>Domestic manufacturing shortens procurement cycles and ensures timely delivery.<\/li>\n\n\n\n<li><strong>Improved Customisation &amp; Adaptability: <\/strong>Indigenous platforms can be tailored to Indian terrain (Himalayan high-altitudes, deserts, maritime zones) which allows continuous upgrades to meet evolving threat environments.<\/li>\n\n\n\n<li><strong>Technology Sovereignty: <\/strong>Developing indigenous technologies ensures freedom in design, production, and future upgrades. It also prevents vulnerability due to sanctions, supply chain disruptions, or technology denials.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the Challenges?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India continues to <strong>depend on imports<\/strong> for several <strong>advanced defence technologies <\/strong>and critical components.<\/li>\n\n\n\n<li><strong>Research and development expenditure<\/strong> in the defence sector remains comparatively limited.<\/li>\n\n\n\n<li><strong>Technological gaps<\/strong> exist in areas such as jet engines, semiconductors, cyber warfare, and advanced sensors.<\/li>\n\n\n\n<li><strong>Private sector participation<\/strong> still faces regulatory and procurement-related challenges.<\/li>\n\n\n\n<li>Achieving global competitiveness in defence exports requires<strong> sustained investment and quality assurance mechanisms.<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Defence Acquisition &amp; Indigenisation Reforms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>DAP 2020 with Focus on Indian-IDDM:<\/strong> It gives the highest priority to the <strong>\u2018Buy (Indian\u2013Indigenously Designed, Developed and Manufactured)\u2019 category<\/strong> to ensure that major defence purchases are made from Indian sources.<\/li>\n\n\n\n<li><strong>Simplified \u2018Make\u2019 Procedure:<\/strong> Encourages Indian industry to design, develop, and manufacture defence products, reducing import dependence.\n<ul class=\"wp-block-list\">\n<li><strong>Under Make-I,<\/strong> the government funds up to 70% of development costs and reserves certain projects for MSMEs.\u00a0<\/li>\n\n\n\n<li><strong>The Make-II category <\/strong>(industry-funded) offers relaxed eligibility, minimal paperwork, and accepts proposals from industry or individuals.\u00a0<\/li>\n\n\n\n<li><strong>So far, 62 projects <\/strong>for the Army, Navy, and Air Force have received \u2018Approval in Principle\u2019.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Liberalised FDI in Defence: <\/strong>Foreign Direct Investment limit raised to <strong>74%<\/strong> via automatic route for new defence industrial licences, and up to <strong>100% by government approval<\/strong> in cases involving access to advanced technology.<\/li>\n\n\n\n<li><strong>Defence Industrial Corridors: <\/strong>Two corridors, Uttar Pradesh Defence Industrial Corridor (UPDIC) and Tamil Nadu Defence Industrial Corridor (TNDIC), are the lifelines of this transformation.\n<ul class=\"wp-block-list\">\n<li>In 2025, they have attracted investments worth over \u20b99,145 crore, with 289 MoUs signed.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Defence Testing Infrastructure Scheme (DTIS):<\/strong> DTIS aims to boost indigenisation by providing financial assistance for setting up<strong> eight Greenfield testing and certification facilities<\/strong> in the aerospace and defence sector.\n<ul class=\"wp-block-list\">\n<li><strong>Seven test facilities <\/strong>are already approved in areas like unmanned aerial systems, electronic warfare, electro-optics, and communications.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Boosting Innovation:<\/strong><strong>iDEX &amp; TDF Innovations for Defence Excellence (iDEX), launched in 2018,<\/strong> supports startups, MSMEs, academia, and innovators with grants and funding to develop technologies for defence and aerospace.\n<ul class=\"wp-block-list\">\n<li><strong>Technology Development Fund (TDF) Scheme<\/strong> also funds industries, especially Start-ups and MSMEs upto an amount of Rs. 10 Crore, for innovation, research and development of defence technologies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Strategic Partnership (SP) Model: <\/strong>Introduced in 2017 to create long-term partnerships between Indian companies and global Original Equipment Manufacturers (OEMs).\n<ul class=\"wp-block-list\">\n<li>These partnerships focus on technology transfer and setting up manufacturing infrastructure in India.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Indigenisation Portals: SRIJAN Portal<\/strong> (launched in 2020) lists defence items previously imported, inviting industry to develop them locally.<\/li>\n\n\n\n<li><strong>Ease of Doing Business in Defence: <\/strong>Defence products requiring industrial licences have been rationalised, and most parts\/components no longer need a licence.\n<ul class=\"wp-block-list\">\n<li>Industrial licence validity has been extended from 3 years to 15 years, with a possible 3-year extension, making investment planning easier.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India should <strong>strengthen indigenous research and development capabilities<\/strong> in emerging defence technologies.<\/li>\n\n\n\n<li>Greater collaboration <strong>between DRDO, private industries, startups, and academic <\/strong>institutions is required.<\/li>\n\n\n\n<li><strong>Defence industrial corridors and manufacturing clusters <\/strong>should be expanded further.<\/li>\n\n\n\n<li><strong>Specialised skill development and training programmes<\/strong> should be launched to create a skilled workforce for emerging defence technologies.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: IE<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> The Ministry of Defence notified the sixth Positive Indigenisation List (PIL), comprising 405 items with an estimated business potential of Rs 3,070 crore. <\/li>\n<p><\/p>\n<p><strong> About <\/strong><\/p>\n<li class=\"ms-5\"> The list is notified by the Department of Defence Production (DDP) and covers Line Replaceable Units (LRU), sub-systems, sub-assemblies, spares, components and raw materials for key defence platforms. <\/li>\n<li class=\"ms-5\"> These include Advanced Light Helicopter, Light Utility Helicopter, Chetak and Cheetah helicopters; fighter jets including the Su-30MKIs, Jaguars and MiG-29s; the Light Combat Aircraft and AL-31FP Engine.\u00a0 <\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/21-08-2026\/defence-indigenisation-india\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-82068","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/82068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=82068"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/82068\/revisions"}],"predecessor-version":[{"id":82071,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/82068\/revisions\/82071"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=82068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=82068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=82068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}