The Department of Military Affairs (DMA), Ministry of Defence (MoD) has prepared a list of 101 items for which there would be an embargo on the import beyond the timeline indicated against them. To take a detailed look at these products Read Here
This is a big step towards self-reliance in defence.
The list of 101 embargoed items comprises of not just simple parts but also some high technology weapon systems like
- artillery guns,
- assault rifles,
- corvettes,
- sonar systems,
- transport aircrafts,
- light combat helicopters (LCHs),
- radars
and many other items to fulfil the needs of our Defence Services.
The list also includes, wheeled armoured fighting vehicles (AFVs) with indicative import embargo date of December 2021, of which the Army is expected to contract almost 200 at an approximate cost of over Rs 5,000 crore (US$ 709.32 million).
Similarly, the Navy is likely to place demands for submarines with indicative import embargo date of December 2021, of which it expects to contract about six at an approximate cost of almost Rs 42,000 crore (US$ 5.96 billion).
For the Air Force, it is decided to enlist the light combat aircraft LCA MK 1A with an indicative embargo date of December 2020. Of these, 123 are anticipated at an approximate cost of over Rs 85,000 crore (US$ 12.06 billion).
The embargo on imports is planned to be progressively implemented between 2020 to 2024.
More such equipment for import embargo would be identified progressively by the DMA in consultation with all stakeholders.
A due note of this will also be made in the Defence Acquisition Procedure (DAP) to ensure that no item in the negative list is processed for import in the future.
In another relevant step, the MoD has bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital procurement routes.
A separate budget head has been created with an outlay of nearly Rs 52,000 crore (US$ 7.38 billion) for domestic capital procurement in the current financial year.
INDIA'S MILITARY EXPENDITURE (1995-2018)
SOURCE : TRADINGECONOMICS
KEY DEFENCE STOCKS IN INDIA
- Astra Microwave – because it supplies microwave-bases high value radio frequency super components.
- Bharat Forge – because it may soon be supplying artillery guns to the Indian military.
- BEML – because it supplies ground support equipment and has potential for long term growth.
- Bharat Electronics – because it supplies communications equipment such as radars and other military communications.
- Bharat Dynamics – because it is a government enterprise that supplies the MoD with missiles, torpedoes and allied defense equipment.
- Larsen & Toubro – because it represents the ministry of defense’s big guns, literally! The government calls upon L&T for various services including design, development, manufacturing and assembly of arms, armaments and even submarines.
- Reliance Naval & Engineering – because it has a warship repair agreement when the MoD.
- Rolta India – because it provides the MoD with geospatial solutions.
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