Negative Import List on Defence Equipment

• Defence Ministry has notified the second negative import list (renamed as) the ‘positive indigenisation list’ of 108 items that can now be only purchased from indigenous sources.
• The list comprises complex systems, sensors, simulators, weapons, and ammunition like helicopters, next-generation corvettes, Air Borne Early Warning and Control (AEW&C) systems, tank engines.

Significance and implications of this move:

• Recognises the potential of the local defence industry.
• Invigorate impetus to domestic Research and Development by attracting fresh investment into technology and manufacturing capabilities.
• Provides an excellent opportunity for ‘start-ups’ as also Micro, Small, and Medium Enterprises (MSMEs).

Negative imports list policy

• It was introduced in August 2020, the negative list essentially means that the Armed Forces (Army, Navy, and Air Force) will only procure such items from domestic manufacturers.
• The manufacturers could be private sector players or Defence Public Sector Undertakings (DPSUs).