Tag: India defence

  • India expands negative list for defence imports with 108 new items

    By PTI
    NEW DELHI: In a big push towards defence indigenisation, India on Monday approved restrictions on the import of an additional 108 military weapons and systems such as next-generation corvettes, airborne early warning systems, tank engines and radars under a staggered timeline of four-and-half years.

    The first negative list for defence imports comprising 101 items that included towed artillery guns, short-range surface-to-air missiles, cruise missiles and offshore patrol vessels was issued last August.

    The restrictions on import of the 108 items that figured in the second list will progressively come into effect in the period from December 2021 to December 2025, officials said.

    Describing it as the ‘second positive indigenisation list’, the defence ministry said it was notified after receiving approval from Defence Minister Rajnath Singh.

    “The second positive indigenisation list comprises complex systems, sensors, simulator, weapons and ammunitions like Helicopters, next-generation corvettes, airborne early warning and control systems, tank engines, medium power radar for mountains, MRSAM weapon systems and many more such items to fulfil the requirements of Indian armed forces,” it said.

    According to a government document, the import restrictions on 49 items including next-generation corvette, some variants of single-engine helicopters, wheeled armoured platform, border surveillance system and armoured engineer recce vehicle will come into force from December 2021.

    The embargo on another 21 items will be applicable from December 2022.

    The items mentioned in the list included 80 MM Tandem Warhead Rocket, software-defined radio, mechanical minefield marking equipment (land-based) and pontoon mid-stream bridging system.

    A separate list of 17 items such as mountain weapon locating radar, smart anti airfield weapon (SAAW) Mk-I and loitering munitions have been identified for import restrictions from December 2023 while the ban on 13 items will be applicable from December 2024.

    The import ban on eight other systems and weapons including anti-material rifle(AMR) 14.5 MM 1000HP engine for T-72 tanks will come into force from December 2025, according to the document.

    Officials said the second list has been prepared by the defence ministry after several rounds of consultations with state-owned and private defence manufacturing firms as well as leading industry bodies such as the Society of Indian Defence Manufacturers (SIDM).

    “The second positive indigenisation list is another testament of the confidence placed by the government and the armed forces on the industry to deliver cutting-edge defence technology for India’s security requirements,” SIDM President Jayant D Patil said.

    He said the list is comprehensive with “truly big-ticket items” to be built in India and will be a great boost to making India self-reliant.

    The first negative list of items for defence imports included towed artillery guns, short-range surface-to-air missiles, cruise missiles, offshore patrol vessels, electronic warfare systems, next-generation missile vessels, floating dock and anti-submarine rocket launchers.

    “In pursuance of Prime Minister Narendra Modi’s endeavour of ‘Atmanirbhar Bharat’ and to boost indigenisation in the defence sector, Defence Minister Rajnath Singh has approved a proposal of the Department of Military Affairs to notify the ‘second positive indigenisation list’ of 108 items,” the defence ministry said.

    “This will give a further boost to indigenisation with the active participation of public and private sector for fulfilling the twin objectives of achieving self-reliance and promoting defence exports,” it said.

    The ministry said all the 108 items will be procured from indigenous sources as per provisions of the Defence Acquisition Procedure (DAP) 2020.

    “The second list lays special focus on weapons/systems which are currently under development/trials and are likely to translate into firm orders in the future.

    Like the first list, import substitution of ammunition which is a recurring requirement has been given special focus,” the defence ministry said in a statement.

    “Not only does the list recognise the potential of the local defence industry, it will also invigorate impetus to domestic research and development by attracting fresh investment into technology and manufacturing capabilities,” it said.

    In the last couple of years, the government has taken a series of measures to boost the domestic defence industry.

    On August 9 last year, Singh announced that India will stop the import of 101 weapons and military platforms like transport aircraft, light combat helicopters, conventional submarines, cruise missiles and sonar systems by 2024.

    Subsequently, the defence ministry released the first list of items, with a detailed timeline, which will not be allowed to import.

    The new defence procurement policy of the defence ministry projected a turnover of Rs 1.75 lakh crore (USD 25 billion) in defence manufacturing by 2025.

    India is one of the most lucrative markets for global defence giants.

    The country figured among the few top importers of military hardware in the world for the last eight to ten years.

    According to estimates, the Indian armed forces are projected to spend around USD 130 billion in capital procurement in the next five years.

    “The defence industry can gainfully utilise this golden opportunity to build robust research and development facilities, capacities and capabilities to meet the futuristic requirements of the armed forces,” the ministry said.

    “This list also provides an excellent opportunity for ‘start-ups’ as also MSMEs which will get a tremendous boost from this initiative,” it said.

    It said the ministry, the Defence Research and Development Organisation (DRDO) and service headquarters will take all necessary steps, including hand-holding of the industry, to ensure that the timelines mentioned in the new list are met.

  • Govt’s endeavour is to bring down defence imports by USD 2 billion by next year: Rajnath Singh

    By PTI
    BENGALURU: Defence Minister Rajnath Singh on Friday said with an aim of encouraging the manufacture of defence related items in the country, the government’s endeavour is also to bring down its defence imports by at least USD two billion by 2022.

    Speaking at the Aero India-2021 here, he also said the aerospace sector has an important role to play, if India has to reach its targets of domestic defence production of USD 25 billion and exports of USD five billion by 2025.

    “With an aim of encouraging the manufacture of defence related items in India, our endeavour will remain to bring down defence imports by at least USD two billion by 2022.

    Between 2016 and 2019, as many as 138 proposals worth over USD 37 billion for domestic manufacturing have been approved,” Singh said.

    The order for 83 LCA MK 1A worth over Rs 48,000 crore that has been given by the government will give a big boost to domestic manufacturing and especially to the aviation industry, he said, adding it would spawn new and resilient supply chains.

    “The negative list of 101 items for import also means to provide opportunities for the domestic manufacturing sector to strengthen their base and contribute to Aatma Nirbhar Bharat,” he added.

    Singh said this was the 13th edition of Aero India and the event has evolved over a period of time to become one of the world’s premium aero shows.

    Strategic ties had been forged that are poised to transform the defence and aerospace manufacturing in the country.

    “We have signed 128 MoUs, 19 ToTs, 4 Handing Overs, 18 Product Launches and 32 Major Announcements, totaling a grand figure of 201 feats.

    Further, 45 MSMEs participating in Aero India 21 have already bagged orders worth Rs 203 crore. This is a major achievement,” he said.

    Noting that the fountainhead of any capability emerges from the robustness of its foundation, the Defence Minister said the country’s foundation of vision rested on three pillars of Research and Development, Public and Private Defence Production and Defence Exports.

    Initiatives have been taken to encourage and facilitate private sector research and development initiatives, he said.

    Speaking about Defence corridors in Uttar Pradesh and Tamil Nadu, Singh said, as part of this initiative Rs 3,700 crore and Rs 3,100 crore have already been pledged by the public and private industries.

    Further the plan entails USD three billion investment in the corridors to improve the investment climate and facility, he said.

    “We realise, appreciate and understand that in a highly specialised and technology driven environment, a collaborative, cooperative and collective approach to defence production and exports is the way forward.” A large number of initiatives have been taken to invite and facilitate the partnership of major companies from across the world and to become a part of Indias defence industrial initiative, he said, adding it was with this objective that FDI cap in the sector was raised to 74 per cent from 49 per cent in August last year.

    A robust domestic manufacturing base relates directly to the potential for defence exports.

    “We plan to move from a USD 11 billion defence base to USD 25 billion by 2025. Of this, we further intend to create an export component of USD five billion,” the Minister said.

    During the period 2015-2020, defence exports grew from Rs 2,000 crore to Rs 9,000 crore.

    It was also important to note that a vast majority of our defence exports are being spearheaded by the private sector, he said.

    Singh also said the Indian aerospace industry, both military and civil, stands uniquely poised today, on the threshold of catapulting itself into the global arena, adding that the aero components sector is set to grow from Rs.30,000 crores today to Rs 60,000 crores by 2024.