Lok Sabha Question No. 469 (UNSTARRED), answered on 2022-02-04
Subject: Manufacturing of Defence Equipment
Ministry: DEFENCE
Asked by: Sanjay Sadashivrao Mandlik, Ravindra Kushawaha, Bidyut Baran Mahato, Vivek Narayan Shejwalkar, Ravi Kishan Shukla, Sudheer Gupta, Manoj Kumar Tiwari, Shrirang Appa Barne, Sambhajirao Mane Dhairyasheel, Prataprao  Jadhav

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

## LOK SABHA UNSTARRED QUESTION NO. 469

TO BE ANSWERED ON 04 TH  FEBRUARY, 2022

## MANUFACTURING OF DEFENCE EQUIPMENT

## 469. SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI RAVINDRA KUSHWAHA:

SHRI BIDYUT BARAN MAHATO:

SHRI VIVEK NARAYAN SHEJWALKAR:

SHRI RAVI KISHAN:

SHRI SUDHEER GUPTA:

SHRI MANOJ TIWARI:

SHRI SHRIRANG APPA BARNE:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI PRATAPRAO JADHAV:

Will the Minister of DEFENCE

be pleased to state:

- (a) whether the Government has announced a fresh list of 351 sub-systems and components of defence equipment that will not be allowed to be imported under the staggered timeline and if so, the details thereof;
- (b) whether the Government proposes to include more items in the said list in near future and if so, the details thereof;
- (c)  whether  the  Government  proposes  to  make  India a  hub  of  manufacturing  of  military platforms and equipment and if so, the details thereof and the steps taken in this regard;
- (d)  the  amount  of  foreign  exchange  likely  to  be earned  by  the  country  annually  as  a  result thereof;
- (e) the steps taken by the Government to encourage Indian manufacturing companies in defence manufacturing after imposing import restriction on the listed items; and
- (f)  the  details  of  the  indigenous  companies  which have  showed  interest  in  manufacturing  of listed defence items?

## A  N  S  W  E  R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(SHRI AJAY BHATT)

(a) & (b): In continuous pursuit of self reliance in defence manufacturing and to minimize import by DPSUs, the Government has notified a Positive Indigenisation list of sub-systems/ assemblies/ sub-assemblies/  components  on  27 th Dec 2021. The list  contains  2500  items  which  are  already indigenized, and another 351 items for which there would be an embargo on imports beyond the timelines indicated against them. Addition of items in Positive Indigenisation List is a continuous activity which depends on the level of capabilities created in Indian Defence Industry.

(c) to (e):  In order to make India a global defence manufacturing hub, the Government has taken several policy initiatives in past few years under 'Make in India' programme  and brought reforms to  encourage  indigenous  design,  development  and  manufacture  of  defence  equipment  in  the country, thereby reducing dependency on imports in coming years. These initiatives, inter-alia, include according priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020;  Notification of  two 'Positive Indigenisation Lists' of total 209 items of Services and  one 'Positive Indigenisation List' of total 2851 items  of 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 FDI policy allowing 74% FDI under automatic route; Simplification of Make Procedure; Launch of Innovations for Defence Excellence (iDEX) scheme involving startups and 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.The initiatives taken by the  Government  have  resulted  in  enhancing  the  budget  for  Capital  procurement  through indigenous sources to 64% in the year 2020-21.

(f):  Government has issued 556 numbers of licenses till December 2021 to Indian companies for manufacturing of defence items. Further, 266 vendors have shown interest for indigenisation of items uploaded on the SRIJAN portal.

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