In a big push towards self-reliance in the Defence sector, the Ministry of Defence (MoD) has prepared a list of 101 items for which there would be an embargo.
The decision was announced by Defence Minister Rajnath Singh on Twitter on Sunday, August 9. Singh said that the Defence Ministry has decided to impose a ban on 101 import items in a big step towards the Atmanirbhar Bharat initiative.
Announcing the decision on Twitter, Rajnath Singh tweeted, "The Ministry of Defence is now ready for a big push to Atmanirbhar Bharat initiative. MoD will introduce import embargo on 101 items beyond given timeline to boost indigenisation of defence production."
Items that will no longer be imported:
- Artillery guns
- Assault rifles
- Sonar systems
- Transport aircraft
- Light Combat Helicopter
- Armoured Fighting Vehicles
All these above items will be indigenously manufactured.
Rajnath Singh said that the list has been prepared by the MoD after several rounds of consultations with all stakeholders, including the Armed Forces, public and private industry to assess current and future capabilities of the Indian industry for manufacturing various ammunition and equipment within India.
Big move towards self-reliance in Defence sector
In a series of tweets, Singh said, "Prime Minister Shri @narendramodi has given a clarion call for a self-reliant India based on the five pillars, i.e., Economy, Infrastructure, System, Demography & Demand and announced a special economic package for Self-Reliant India named 'Atamnirbhar Bharat'."
"This decision will offer a great opportunity to the Indian defence industry to manufacture the items in the negative list by using their own design and development capabilities or adopting the technologies designed & developed by DRDO to meet the requirements of the Armed Forces."
"Almost 260 schemes of such items 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."
"Of these, items worth almost Rs 1,30,000 crore each are anticipated for the Army and the Air Force while items worth almost Rs 1,40,000 crore are anticipated by the Navy over the same period."
"The list also includes, wheeled Armoured Fighting Vehicles (AFVs) with indicative import embargo date of December 2021, of which the Army is expected to contract almost 200 at an approximate cost of over Rs 5,000 crore."
"The embargo on imports is planned to be progressively implemented between 2020 to 2024. Our aim is to apprise the Indian defence industry about the anticipated requirements of the Armed Forces so that they are better prepared to realise the goal of indigenisation."
"All necessary steps would be taken to ensure that timelines for production of equipment as per the Negative Import List are met, which will include a co-ordinated mechanism for hand holding of the industry by the Defence Services."
"More such equipment for import embargo would be identified progressively by the DMA in consultation with all stakeholders. A due note of this will also be made in the DAP to ensure that no item in the negative list is processed for import in the future."
"MoD has also bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital procurement routes. A separate budget head has been created with an outlay of nearly Rs 52,000 crore for domestic capital procurement in the current financial year. "