Negative Import list for Defence Under Make In India Programme | IAS Target IAS Target

Negative Imports list for Defence

05 Dec 2021

Category : Science and Technology

Topic: Negative Imports list for Defence

The Ministry of Defense reported the second negative import list of 108 articles, currently only available from indigenous sources (now renamed "Positive Indigenization List"). With the new list, the total number of lists will increase to 209.
This list includes ammunition for complex systems, sensors, simulators, weapons, helicopters, next-generation corvettes, early warning and control systems, armoured engines, and more.

Meaning and Impact of this Step:

  • Realize the potential of the regional defence industry.
  • By drawing new investment in technology and manufacturing capacity, the domestic R & D will be revitalized.
  • It provides excellent opportunities for "start-ups" and micro, small and medium-sized enterprises (MSMEs).

What is the policy for negative import lists?

  • RThe Negative List, introduced in August 2020, basically means that the military (Army, Navy, Air Force) purchases such items from domestic manufacturers.
  • The manufacturer may be a private-sector party or a public sector defence company (DPSU)

What will be the impacts of this policy?

  • In accordance with the Stockholm International Peace Research Institute, India has been the second-largest importer within 2014 and 2019, with 16.75 billion USD worth of imports throughout this period.
  • The government wants to decrease the interdependence, especially through make in India, on imported goods in defence and give the domestic defence manufacturing industry a shot in the arm.
  • By dismissing the likelihood of importing the items on the negative list, the domestic industry is allowed to step up and manufacture them for the needs of the forces.