India’s defence industry witnesses surge in indigenous production

New Delhi, July 16: To promote self-reliance in defence and reduce imports by Defence Public Sector Undertakings (DPSUs), the Department of Defence Production (DDP) under the Ministry of Defence has notified the fifth Positive Indigenisation List (PIL), comprising 346 items.

According to the Defence Ministry, these items include strategically important Line Replacement Units/Systems/Subsystems/Assemblies/Subassemblies/Spares & Components and raw materials, with an import substitution value of Rs 1,048 crore. “The items will only be procured from the Indian industry after the timelines of indigenisation as indicated in the list available on the Srijan portal,” the ministry stated.

The Srijan Portal, launched in 2020, serves as a platform where DPSUs and Service Headquarters (SHQs) offer defence items to industries, including MSMEs and start-ups, for indigenisation. Prime Minister Modi’s push for ‘Aatmanirbhar Bharat’ has led to notable progress in indigenising defence items, with Defence Minister Rajnath Singh spearheading efforts to achieve self-reliance in defence production.

The DPSUs will undertake the indigenisation of items listed in the fifth PIL through various methods, including the ‘Make’ procedure or in-house development involving the industry, including MSMEs. This initiative is expected to stimulate economic growth, increase investment in defence, and reduce import dependency. Additionally, it will enhance the design capabilities of the domestic defence industry by involving academia and research institutions.

The DPSUs involved in the fifth PIL include Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), BEML Limited, India Optel Limited (IOL), Mazagon Dock Shipbuilders Limited (MDL), Goa Shipyard Limited (GSL), Garden Reach Shipbuilders & Engineers Ltd (GRSE), and Hindustan Shipyard Limited (HSL). These organizations have begun issuing Expressions of Interest/Requests for Proposals on their respective websites, with links available on the Srijan Portal Dashboard, encouraging participation from industry players, MSMEs, and start-ups.

Earlier, the DDP notified four PILs comprising 4,666 items, of which 2,972 items, valued at Rs 3,400 crore, have already been indigenised. These lists for DPSUs complement five positive indigenisation lists of 509 items notified by the Department of Military Affairs (DMA), which include highly complex systems, sensors, weapons, and ammunition.

As of June 2024, over 36,000 defence items were offered to the industry for indigenisation by DPSUs and SHQs, with more than 12,300 items indigenised in the past three years. Consequently, DPSUs have placed orders worth Rs 7,572 crore on domestic vendors.

A recent surge in activity within India’s defence sector highlights Prime Minister Narendra Modi’s Atmanirbhar Bharat strategy, which aims to bolster indigenous arms production and reduce reliance on foreign defence technology and imports. Analysts suggest this initiative is intended to enhance national security, lower import costs, and stimulate domestic industrial growth.

In a notable development, India’s Ministry of Defence (MoD) signed contracts worth Rs 195.2 billion ($2.36 billion) on March 1 to procure nuclear-capable BrahMos missiles for the navy.

This followed the inauguration of two variants of ammunition in twelve categories that were identified for manufacture by the Indian industry in phase one. “All cases are likely to fructify in the next one year, as per the envisaged timelines. Approval has been already obtained for five additional ammunition categories to be developed in phase two,” former Army Chief Gen Pande said on the ammunition indigenisation plan on February 26, 2024. “Simultaneously, MAKE programmes for developing new-generation ammunition, including electronic fuses currently not held in the inventory, are also being processed.”

The Kanpur complex is set to become one of the largest integrated ammunition manufacturing complexes in South Asia, Adani Defence and Aerospace said in a statement. The facilities will produce high-quality small, medium, and large calibre ammunition for the armed forces, paramilitary forces, and the police.  “The facility has started rolling out small calibre ammunition, starting with 150 million rounds estimated

Despite these efforts, India remains the world’s largest importer of arms, according to the Stockholm International Peace Research Institute (SIRPI), although the country’s arms imports declined by 11% between 2018 and 2022.

Bundelkhand's Transformation into a Defence Manufacturing Hub

Bundelkhand, known for its valour and cultural heritage, is undergoing a significant transformation into a key player in India's defence manufacturing sector. Historically considered backward, the region is now thriving under the government's 'Make in India' and 'Aatmanirbhar Bharat' initiatives. Its strategic location in the heart of India provides logistical advantages, and recent projects like the Defence Corridor, Bundelkhand Expressway, and solar energy initiatives have revitalized the area. The Uttar Pradesh Defence Industrial Corridor ensures efficient supply chain management and resource deployment, enhancing Bundelkhand's role in the defence sector.

The Uttar Pradesh government supports this transformation with incentives such as tax exemptions, land subsidies, and financial aid for research and development. The Defence Manufacturing Policy aims to attract investment and boost local manufacturing capabilities. In Jhansi, industrial development is advancing with significant investments from companies like Bharat Dynamics Limited (BDL), promising job creation and economic growth.

Bundelkhand's numerous technical institutions and engineering colleges produce a skilled workforce ready to contribute to the defence sector. These institutions can collaborate with defence manufacturers to offer specialized training in advanced manufacturing technologies. The region is also becoming a hub for research and development through collaborations with international defence companies. Technology parks and incubators will enhance its capability to produce sophisticated defence equipment, exemplified by the construction of a Bulk Drug Park in Lalitpur supported by CSIR and DRDO.

Bundelkhand is poised to become a leading hub for defence manufacturing, driven by strategic advantages, policy support, and a skilled workforce.