Lok Sabha Question No. 4111 (UNSTARRED), answered on 2023-03-24
Subject: Defence Manufacturing under Atmanirbhar Bharat
Ministry: DEFENCE
Asked by: Rattan Lal Kataria

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

## LOK SABHA UNSTARRED QUESTION NO. 4111

TO BE ANSWERED ON 24 th  March, 2023

## DEFENCE MANUFACTURING UNDER ATMANIRBHAR BHARAT

## 4111.  SHRI RATTAN LAL KATARIA:

Will the Minister of DEFENCE be pleased to state:

(a)    whether  70  per  cent  military  equipment  are  being  manufactured  in  the  country  under Atmanirbhar Bharat Yojana as on date; and

(b)  if so, the percentage of decline in import of military equipment as a result of the said Scheme?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a) & (b):  Several policy initiatives and reforms have been taken by Government in the past few  years  to  encourage  indigenous  design,  development  and  manufacture  of  defence equipment, there by promoting self-reliance in defence manufacturing in the country. These initiatives,  inter-alia,  include  according  priority  to  procurement  of  capital  items  from domestic sources under Defence Acquisition Procedure (DAP)-2020;  Notification of  four 'Positive Indigenization Lists' of total 411 items of Services and three 'Positive Indigenization Lists' of total 3738 items  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;  Liberalization  of Foreign Direct Investment(FDI) policy allowing 74% FDI under automatic route; Simplification of Make Procedure; Launch of Mission DefSpace; Launch of Innovations for Defence  Excellence  (iDEX)  scheme  involving  startups  &  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; Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu; Opening up of Defence Research & Development (R&D) for industry, startups and academia with 25 percent of defence R&D budget and Progressive increase in allocation of Defence Budget of military modernization for procurement from domestic sources, etc.

As  a  result  of  these  policy  initiatives,  many  significant  projects  including  155mm Artillery Gun system 'Dhanush', Advanced Towed Artillery Guns (ATAGs), Light Combat Aircraft  'Tejas',  Surface  to  Air  Missile  system  'Akash',  Main  Battle  Tank  'Arjun',  T-90 Tank, T-72 Tank, Armoured  Personnel Carrier 'BMP-II/IIK', Su-30  MK1,  Cheetah Helicopter, Advanced Light Helicopter, Dornier Do-228, High Mobility Trucks, INS Kalvari, INS Khanderi, INS Chennai, Anti-Submarine Warfare Corvette (ASWC), Arjun Armoured Repair and Recovery Vehicle, Bridge Laying Tank, Bi-Modular Charge System (BMCS) for 155mm  Ammunition,  Medium  Bullet  Proof  Vehicle  (MBPV),  Weapon  Locating  Radar (WLR), Integrated  Air  Command  and  Control  System  (IACCS),  Software  Defined  Radios (SDR),  Lakshya  Parachute  for  Pilotless  Target  Aircraft,  Opto  Electronic  Sights  for  Battle Tanks,  Water  Jet  Fast  Attack  Craft,  Inshore  Patrol  Vessel,  Offshore  Patrol  Vessel,  Fast Interceptor Boat, Landing Craft Utility, 25 T Tugs, etc. have been produced in the country during the last few years.

Due to above policy initiatives, the expenditure on defence procurement from foreign sources has reduced from 46% of overall expenditure in 2018-19 to 36.7% as per available data till December, 2022, thereby reducing dependency on import of military equipment.

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