Defence stocks are bucking the broader market trend and have opened in the green on the back of the news that Defence Minister Rajnath Singh has approved a fresh list of 780 components and subsystems which will only be procured from the domestic industry
Defence stocks are bucking the broader market trend and have opened in the green when the Nifty is down over 1.5 percent. This is on the back of the news that Defence Minister Rajnath Singh approved a fresh list of 780 components and sub-systems that will only be procured from the domestic industry.
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The defence ministry has set timelines for a staggered import ban from December 2023 to December 2028 as the government wants to reduce dependence on imported military platforms and support domestic defence manufacturing.
This is the third such "positive indigenisation" list comprising line replacement units, sub-systems and components used for various military platforms, equipment and weapons to minimise imports by the defence public sector undertakings (DPSUs).
The other two similar lists were published in December 2021 and March 2022.
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Indigenisation of these items would be taken up through different routes under the 'Make' category, the ministry said in a statement on Sunday. The 'Make' category aims to achieve self-reliance by involving greater participation of the Indian industry in defence manufacturing.
"Projects involving design and development of equipment, systems, major platforms or upgrades thereof by the industry can be taken up under this category," the ministry said. It said the indigenous development of these items would bolster the economy and reduce the import dependence of DPSUs.
"In addition, it will help to harness the design capabilities of the domestic defence industry and position India as a design leader in these technologies," the ministry said. It said the DPSUs would soon float expressions of interest (EoIs) and requests for proposals (RFPs).
The government has taken several measures to promote domestic defence production in the last few years.
India, facing tough challenges from neighbours on its northern and western frontiers, is one of the largest importers of arms globally. According to estimates, the Indian armed forces are projected to spend around $130 billion (one billion is equal to Rs 100 crore) in capital procurement over the next five years.
The defence ministry has set a goal of a turnover of $25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years, including an export target of $5 billion worth of military hardware.
(With PTI inputs)
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(Edited by : Abhishek Jha)
First Published: IST