- 08 Apr 2022
- ICICIdirect Research
Government announces third positive indigenisation list
News: The government has released the third list of over 101 military systems and weapons that will come under an import ban over the next five years and be developed indigenously, in a fresh impetus to the Indian Defence industry. The third list comprises major equipment and platforms including sensors, weapons and ammunition, naval utility helicopters, patrol vessels, anti-ship missile and anti-radiation missiles. Also, the DRDO has signed 30 transfer of technology (ToT) agreements with 25 industries to strengthen local manufacturing
Views: Post this list, there are now 310 defence equipment (including 209 announced in first two lists) slated to be manufactured locally. As per government estimates, orders worth ~ Rs 7 lakh crore are likely to be placed on the Industry in the next five to seven years as part of these items covered in three lists. Out of these 310 equipment, 190 are planned to be indigenised by December 2022. This reflects the government’s strong push towards indigenisation of defence manufacturing, which will drive strong orders inflows to domestic players
Impact: Positive