The Second Negative Import List: The Defence Ministry:
The Defence Ministry has notified the second negative import list — now renamed as the ‘positive indigenisation list’ — of 108 items that can now be only purchased from indigenous sources. The new list takes the total number on the list to 209.
- The list comprises complex systems, sensors, simulator, weapons and ammunitions 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 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).
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).
- As per Stockholm International Peace Research Institute, India has been the second-largest importer between 2014 and 2019 with US$ 16.75 billion worth of imports during this period.