Lok Sabha Question No. 3359 (UNSTARRED), answered on 2021-12-17
Subject: Indigenization of Defence products
Ministry: DEFENCE
Asked by: Rita Bahuguna Joshi

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF MILITARY AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.3359

TO BE ANSWERED ON 17 th  DECEMBER, 2021

## INDIGENIZATION OF DEFENCE PRODUCTS

## 3359. SHRIMATI RITA BAHUGUNA JOSHI:

Will the Minister of DEFENCE be pleased to state:

- (a) whether the Ministry has prepared a 'positive indigenization list' to boost indigenization in the defence sector;
- (b) if so, the details thereof along with the response received from the public and private sector companies engaged in defence production in this regard;
- (c) whether the Government has assessed the estimated savings in imports likely to be achieved due to indigenization initiatives and if so, the details thereof;
- (d) the capacities expected to be created in the defence sector through the said measures;
- (e)  whether  ban  on  certain  imports  have  an  impact  on  operational  effectiveness  of  the  armed forces and if so, the details thereof; and
- (f) whether there is any further plans for publishing another positive list of indigenization and if so, the details thereof?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

- (a) Yes, Sir.
- (b)        (i) Two Positive Indigenisation Lists comprising 101 and 108 items were promulgated on 21 Aug 2020 and 31 May 2021 respectively. The lists have been hosted  on  Ministry  of  Defence  Website  to  give  wide  visibility  to  the  Defence Industrial base in  enabling them to effectively meet requirements of the Armed Forces.
- (ii) The initiative has been welcomed by the Indian Industry.

- (c)        (i) Positive Indigenisation Lists comprise defence equipments which will be designed,  developed  and  manufactured  over  a  period  from  2020  to  2025. Therefore, it will not be possible to assess actual savings at this juncture.
- (ii) However, as per available projections, it is estimated that  over three and a half lakh Crores worth of equipment included in the Positive Indigenisation Lists will be ordered from Indian Vendors between 2020 to 2028.
- (d)         (i) The Positive Indigenisation Lists comprise not just of simple equipment but also some high technology weapon systems like Artillery Guns, Wheeled Armoured Fighting  Vehicles,  Light  Combat  Aircraft,  Light  Combat  Helicopters,  next Generation Missile Vessels & Corvettes, Land based High Power Radars, Land based  Short  Range  Surface  to  Air  Missiles,  various  types  of  Software  Defined Radios, etc.
- (ii) Focus has also been given to indigenisation of ammunition, which is a recurring requirement.
- (iii) Initiatives to promote indigenisation are likely to result in number of spinoff; the major one being transformation of Indian Military from Buyers' to Builders' in respect  of  indigenous  Defence  production,  and  as  a  nation,  from  'Importer  to Exporter' of defence systems.
- (iv) The defence production sector is likely to emerge as one of the key contributor to nation's economy as well as creation of numerous job opportunities. For instance, setting  up  of  the  two  defence  corridors,  one  each  in  Uttar  Pradesh  and  Tamil Nadu, aims to generate employment in coming years.
- (e) No, Sir.

(f) Yes, Sir. Positive Indigenisation lists are promulgated periodically by MoD by obtaining and collating inputs from all stakeholders, viz. Services, DRDO, DDP and Private Industry.

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