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FY 2021 Witnessed Over 64% of Defence Procurement from Indian Manufacturers

In the last three years i.e., 2018-19 to 2020-21, the Government has accorded Acceptance of Necessity (AoN) for 119 proposals worth Rs 214,255.65 crore approximately, under ‘Buy (Indian-Indigenously Designed, Developed & Manufactured (IDDM)’, ‘Buy (Indian)’, ‘Buy and Make (Indian)’, ‘Make’, ‘SP Model’, ‘Buy & Make’ categories of capital acquisition.

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The Government has taken several policy initiatives and brought in reforms to encourage indigenous design, development and manufacture of defence equipment in the country, thereby reducing dependence on imports in the coming years. These initiatives, inter-alia, include according priority to procurement of capital items from domestic sources under Defence Acquisition Procedure (DAP)-2020; Notification of two ‘ Positive Indigenisation Lists’ of total 209 items for which there would be an embargo on the import beyond the timeline indicated against them; Simplification of Industrial licensing process with longer validity period; Liberalisation of FDI policy allowing 74 % FDI under automatic route;  Simplification  of  Make  Procedure;  Launch of Innovations for Defence Excellence (iDEX) scheme involving startups& MSMEs; Implementation of “ Public Procurement (Preference to Make to India), Order 2017; Launch of an indigenization portal namely SRIJAN to facilitate indigenization by Indian Industry including MSMEs; Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers and Establishment of two Defence Industrial Corridors one each in Uttar Pradesh and Tamil Nadu.

This information was given by Raksha Rajya Mantri Shri Ajay Bhatt in a written reply to Shri Harnath Singh Yadav and Shri Vijay Pal Singh Tomarin at the Rajya Sabha

In the last three years i.e., 2018-19 to 2020-21, the Government has accorded Acceptance of Necessity (AoN) for 119 proposals worth Rs 214,255.65 crore approximately, under ‘Buy (Indian-Indigenously Designed, Developed & Manufactured (IDDM)’, ‘Buy (Indian)’, ‘Buy and Make (Indian)’, ‘Make’, ‘SP Model’, ‘Buy & Make’ categories of capital acquisition.

The capital expenditure on purchase of defence equipment from Indian and Foreign vendors for the Services during the last three years is as given below:

(Rs in crore)

 Total ProcurementProcurement from Foreign VendorsProcurement from Indian Vendors% of Procurement from Indian Vendors
2018-1975913.0636957.0638956.0051.32%
2019-2091004.9438156.8352848.1158.07%
2020-21118860.5242786.5476073.9864.00%

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