India’s defence imports reduces from 46% to 36.7% since 2018-19

As per data by the Indian Ministry of Defence (MoD) the defence imports of India from foreign sources have reduced from 46% since 2018-19 to 36.7% as of December 2022.

The import of defence products has decreased due to various projects that have been successfully developed within the country, such as the 155mm artillery gun system ‘Dhanush’, Light Combat Aircraft (LCA) ‘Tejas’, and surface-to-air missile system ‘Akash’.

These projects have been the result of policy reforms implemented by the government, which have prioritized domestic procurement under the defence acquisition procedure (DAP)-2020 and created “positive indigenisation lists” to reduce reliance on imports. Till date, the Ministry of Defence (MoD) has notified four Positive Indigenisation Lists comprising 411 major weapons platforms/systems with an embargo on their import from defined timelines.

Further, MoD has also notified three Positive Indigenisation Lists in respect of DPSUs, comprising 3,738 major Line Replacement Units/sub-system/ assemblies/sub-assemblies/components & spares with an embargo on their import from defined timelines. Further, more than 26,000 defence items have been uploaded on SRIJAN Portal (https://srijandefence.gov.in/)and offered to the industry for indigenisation. So far, 7,031 items have already been indigenised, which cater to the domestic and global markets.

Other initiatives include simplifying the licensing process, liberalizing foreign direct investment policies, launching the Mission DefSpace and Innovations for Defence Excellence (iDEX) scheme, implementing the Public Procurement (Preference to Make in India) Order 2017, and establishing Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu.