Lok Sabha Question No. 4955 (UNSTARRED), answered on 2022-04-01
Subject: Indigenization of Defence Sector
Ministry: DEFENCE
Asked by: Arvind Ganpat Sawant, Krupal Balaji Tumane

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE PRODUCTION

## LOK SABHA

## UNSTARRED QUESTION NO. 4955

TO BE ANSWERED ON 1 ST  APRIL, 2022

## INDIGENIZATION OF DEFENCE SECTOR

## 4955.  SHRI ARVIND GANPAT SAWANT: SHRI KRUPAL BALAJI TUMANE:

Will the Minister of Defence be pleased to state:

- (a) the details of constructive works done for promoting indigenization in the defence sector;
- (b) whether the Government has received any proposal from public and private sector companies for indigenous manufacturing of defence equipment;
- (c) if so, the details thereof and the action taken by the Government thereon;
- (d) whether the Government has made any assessment of the amount likely to be saved due to reduction in defence imports as a result of the indigenous production of defence equipment and if so, the details thereof; and
- (e)  the  estimated  capacity  of  defence  production  likely  to  be  increased  as  a  result  of  the  said indigenous manufacturing of defence equipment?

## A  N  S  W  E  R

## MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a) to (e): The Government has taken several policy initiatives in the past few years under 'Make in  India'  program  and  brought  in  reforms  to  encourage  indigenous  design,  development  and manufacture  of defence equipment  in the country, thereby reducing import of defence equipment.  These  initiatives,  inter-alia,  include  according  priority  to  procurement  of  capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020;  Announcement of  18  major  defence  platforms  for  industry  led  design  &  development;  Notification  of   two 'Positive Indigenisation Lists' of  total 209 items of Services and  two 'Positive Indigenisation List'  of  2851  items and  107  Line  Replaceable  Units  (LRUs)  respectively,  of  Defence  Public Sector Undertakings(DPSUs), for which there would be an embargo on the import beyond the timelines  indicated  against  them;  Simplification  of  Industrial  licensing  process  with  longer validity  period;  Liberalisation  of  Foreign  Direct  Investment(FDI)  policy  allowing  74%  FDI under automatic route; Simplification of Make Procedure; Launch of Innovations for Defence

Excellence  (iDEX)  scheme  involving  start-ups  &  Micro,  Small  and  Medium  Enterprises (MSMEs); Implementation of  Public Procurement (Preference to Make in India) Order 2017; Launch of an indigenization portal namely SRIJAN to facilitate indigenisation by Indian Industry including MSMEs; Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for  Defence  manufacturing  by  assigning  higher  multipliers;  and  Establishment  of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu.

Ministry of Defence has also launched a SRIJAN portal to promote indigenization by the industry.  As on date,19509 defence items, which were earlier imported, have been uploaded on the portal for indigenisation. Out  of them, the Indian industry has shown  interest for indigenisation of 4006 defence items so far.

With  the  actions  of  the  Government,  the  expenditure  on  defence  procurement  from foreign  sources  has  reduced  from  46%  to  36%,  thereby  reduced  import  burden,  in  the  last  3 (three) years i.e. from 2018-19 to 2020-21. Further, the Value of Production of Public & Private Sector Defence Companies have increased from Rs. 79,071 crore to Rs. 84,643 crore in last two years i.e. 2019-20 and 2020-21.

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