Defence stocks opened against the trend when the Nifty index fell more than 1.5%. Defence Minister Rajnath Singh approved a new list of 780 components and subsystems procured only from domestic industry.

As the government looks to reduce its reliance on imported military platforms and support domestic defence manufacturing, the Defence Ministry has set a timetable for a staggered import ban from December 2023 to December 2028.

This is the third such list to be “positive indigenisation” and includes line replacement units, subsystems and assemblies for a variety of military platforms, equipment and weapons to minimise imports by Defence Public Sector Enterprises (DPSU).

Two other similar lists were released in December 2021 and March 2022.

In a statement on Sunday, the ministry said the localisation of these products would be through different routes under the “Make in India” category. The “Make in India” category aims to achieve self-reliance by allowing the Indian industry to become more involved in defence manufacturing.

“Projects involving the design development or upgrading of industrial equipment, systems, and major platforms can be undertaken under this category,” the ministry said. It said the indigenous development of these projects would boost the economy and reduce DPSU’s import dependence.

“Furthermore, this will help leverage the design capabilities of the domestic defence industry and position India as a design leader in these technologies,” the ministry said. It stated that the DPSU would soon submit an Expression of Interest (EoI) and a Request for Proposal (RFP).

Over the past few years, the government has taken several measures to boost domestic defence production.
India faces serious challenges from its neighbours on its northern and western borders, and India is one of the world’s largest arms importers. It is estimated that the Indian Armed Forces is expected to spend about $130 billion (Rs 100 crore) on capital procurement over the next five years.

The Defence Ministry has set a target of $25 billion (Rs 1.75 lakh crore) in defence manufacturing turnover over the next five years, including a $5 billion export target for military hardware.