India approves hundreds of defense items to be sourced locally

New Delhi is looking to ramp up production of defense items at home and increase military exports
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In a move to reduce imports, New Delhi has identified nearly 5,000 military goods to be manufactured internally

The Indian Defense Ministry has identified a new list of defense items to be bought from local vendors as part of an effort to ramp up domestic manufacturing and reduce imports. The list of 346 items which will be mandated for purchase from local vendors will have an “import substitution value” worth around $125 million, according to a statement from the ministry released on Tuesday.

The items on the list include various components and spare parts as well as raw materials. The contracts will be carried out by state-owned defense companies, with the potential involvement of medium and small enterprises. “This will provide impetus to the growth in the economy, enhanced investment in defense and lead to reduced import dependence,” the Defense Ministry said.

It is the fifth list of products identified by the country’s military for local procurement under the government’s ‘Atmanirbharta’ (self-reliance) initiative. The other four lists include more than 4,600 items, of which nearly 3,000 have been indigenized. In addition, a set of lists containing 500 items was identified separately by the Department of Military Affairs. It includes highly complex systems, sensors, weapons, and ammunition.

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Overall, according to the Defense Ministry, over 36,000 items were approved for indigenization by June 2024, a third of which has already been indigenized. So far, this has allowed Indian defense manufacturers to place orders worth over 75 billion rupees ($900 million) with domestic vendors.

In another significant development, the Economic Times reported on Thursday that New Delhi is set to give orders for warships worth $8.4 billion. Mazagon Dock and Garden Reach Shipbuilders, two of the largest shipbuilding companies in the country, are believed to be the frontrunners to secure the contract for stealth frigates to be built under Project 17B, a follow-on order for the Project 17A Nilgiri-class frigates which are currently under construction. The frigates, the report said, will be the “most advanced ships” built in India.

The South Asian country was the world’s largest arms purchaser from 2019 to 2023, with Russia being its biggest supplier, accounting for 36% of its arms imports, according to the Stockholm International Peace Research Institute. However, according to experts, this dynamic is changing, with India using its indentation efforts and diversifying its sources of military imports.

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