India bans 101 Defence items to boost indigenous production.

India banned 101 Defence items to boost indigenous production.

August 9, 2020.

India bans 101 Defence items to boost indigenous production. Rajnath Singh, defense minister of India said on Sunday that a list of 101 items has been prepared by the government and a ban will be imposed on import to motivate ‘Atmanirbhar Bharat Abhiyan’ declared by the Prime Minister Narendra Modi. The embargo on the imports is to be implemented between 2020 and 2024.

The list prepared by the defense ministry of India includes sniper rifles, mini UAVs, a variety of radars, assault rifles, multi-barrel rocket launchers, communication satellites, basic trainer aircraft, light transport aircraft, ship-borne cruise missiles, long-range land-attack cruise missiles, light combat aircraft, missile destroyer, artillery guns, and different types of ammunition.

The defense minister Mr. Rajnath Singh said that all-important steps would be taken to meet the timeline for the production of the defense items included in the list. The embargo on the imports is to be implemented between 2020 and 2024. The Indian Army is to import wheeled 200 armoured fighting vehicles by December 2021. It is of worth Rs 5,000 crore. Of the 101 items, almost Rs 1,30,000 crores are anticipated for the army and Indian Air Force.

The Defence Ministry divided capital procurement as domestic and foreign capital procurement for the year 2020-21. A separate budget of Rs 52,000 crores has been created for domestic procurement in the current financial year. Mr. Singh said, “Our aim is to appraise the Indian defense industry about the anticipated requirements of the armed forces so that they are better prepared to realize the goal of indigenization.”

More items will be added to the list of weapons banned for import after reviewing it every year and discussions with the department of military affairs (DMA). This will motivate the country to mandatory develop technology for the defense systems and platforms mentioned on the negative import list. The embargo is the official ban on trade and other commercial activities in the country.

In March 2020, the Defence Procurement Procedure, 2020 was unveiled to increase the indigenous manufacturing of defense equipment. This is to boost the “Make in India” initiative. A new category of Buy (Global-Manufacture in India) has been introduced with a minimum of 50% indigenous content.

Mr. Singh said, “DMA will identify other such pieces of equipment for import embargo after consulting with stakeholders. A due notification of this will also be added in the Defence Acquisition Procedure. This will ensure that items in the negative list will not be processed for import in the time coming ahead.”

Around 260 schemes are involved in the selected 101 items.  They were contracted by the Tri-Services at an approximate cost of Rs 3.5 lakh crore between April 2015 and August 2020. It is estimated that contracts worth almost Rs 4 lakh crore will be placed upon the domestic industry within the next 6 to 7 years. Hence, this is of a great boost to the domestic industries. This will help India become self-reliant.

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