In a major step towards the indigenous production of defence equipment, the government has prepared a list of 101 items that will fall under an import embargo between this year and 2024. The embargoed items include weapon systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircraft and light combat helicopters among others.
The defence ministry estimates that contracts worth almost Rs 4 lakh crore will be placed with domestic manufacturers within the next 6-7 years. In fact, more equipment for an import embargo will be identified by the Department of Military Affairs and placed on the negative list.
The ministry of defence has also separated the capital procurement budget for 2020-21 between domestic and foreign routes. For the current financial year, an outlay of Rs 52,000 crore has been created for just domestic procurement.
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What will this mean for India’s domestic defence industry? To take the discussion forward, CNBC-TV18’s
Shereen Bhan spoke to General VP Malik, Former Chief of Army Staff and SP Shukla, Vice President of Society of Indian Defence Manufacturers (SIDM) and President of defence at the Mahindra Group.