What is Defense Manufacturing and Indigenization?
Historical Background
Key Points
8 points- 1.
Defense Acquisition Procedure (DAP) 2020: Prioritizes procurement from Indian vendors and promotes indigenous design and development. Categories like Buy (Indian - IDDM) Indigenously Designed, Developed and Manufactured are given highest preference.
- 2.
Negative Import List: Periodically released lists of defense items whose import is prohibited, encouraging domestic production. The first list was released in 2020.
- 3.
FDI Policy: Increased Foreign Direct Investment (FDI) limit in defense manufacturing to 74% under automatic route and 100% via government route for specific cases.
- 4.
Defense Industrial Corridors: Established in Uttar Pradesh and Tamil Nadu to create a robust ecosystem for defense production.
- 5.
Strategic Partnership Model: Aims to involve private sector players in manufacturing high-tech defense equipment in partnership with foreign OEMs.
- 6.
Technology Development Fund (TDF): Scheme to promote indigenous design and development of defense technologies by MSMEs and startups.
- 7.
Innovations for Defence Excellence (iDEX): Platform to engage startups and MSMEs to develop innovative solutions for defense and aerospace.
- 8.
Budgetary Allocation: Increased capital outlay for domestic procurement and R&D in defense.
Visual Insights
Defense Industrial Corridors & Key Production Hubs in India
This map highlights the locations of India's two designated Defense Industrial Corridors (DICs) in Uttar Pradesh and Tamil Nadu, along with key defense production sites like GRSE Kolkata, showcasing the geographical focus of defense manufacturing and indigenization efforts.
- ๐Uttar Pradesh Defense Industrial Corridor โ UP DIC (Lucknow, Kanpur, Agra, Aligarh, Chitrakoot, Jhansi)
- ๐Tamil Nadu Defense Industrial Corridor โ TN DIC (Chennai, Hosur, Salem, Coimbatore, Tiruchirappalli)
- ๐Garden Reach Shipbuilders & Engineers (GRSE), Kolkata โ Major Shipyard (ASW SWC 'Anjadip' Producer)
- ๐Bengaluru, Karnataka โ Aerospace & Defense R&D Hub
Recent Developments
5 developmentsSignificant increase in the share of domestic procurement in the defense budget.
India has become a net exporter of defense equipment, with exports reaching INR 21,083 crore in FY 2023-24.
Development of major indigenous platforms like INS Vikrant (aircraft carrier), Tejas LCA (fighter jet), and Akash Missile System.
Growing participation of the private sector and MSMEs in defense supply chains.
Focus on critical and emerging technologies like AI, drones, and cyber security in defense R&D.