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DAILY NEWS ANALYSIS

  • 09 August, 2020

  • 5 Min Read

Defence Ministry to impose import embargo on 101 items

Defence Ministry to impose import embargo on 101 items

  • The Defence Minister has stated that the Defence Ministry will introduce import embargo on 101 items beyond the given timeline.
  • The policy change comes in the wake of Chinese transgressions and the build-up along the Line of Actual Control (LAC) in Ladakh.

News:

  • The government intends to boost indigenisation of defence production.
  • It aims to reach a turnover of $25 billion through indigenously manufactured defence products.
  • It also expects to export products worth $5 billion.
  • In any government contract over ?200 crore, no foreign company can participate in the tendering process.
  • A list of 101 items has been prepared by the Ministry for which there would be an embargo on the import beyond the timeline indicated against them.
  • Current and future capabilities of the Indian industry for manufacturing various ammunition & equipment within India have been assessed.
  • The embargo on imports is planned to be progressively implemented between 2020 to 2024.
  • The items comprise of not just simple parts but also some high technology weapon systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, LCHs, radars.
  • The list also includes wheeled Armoured Fighting Vehicles (AFVs) with indicative import embargo date of December 2021.
  • The Army is expected to contract almost 200 AFVs at an approximate cost of over ?5,000 crore.
  • In another relevant step, MoD has bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital procurement routes.

Significance:

  • These measures are considered a big step towards self-reliance in defence.
  • It offers a great opportunity to the Indian defence industry to manufacture the items in the negative list by using their own design and development capabilities or adopting the technologies designed and developed by the Defence Research Development Organisation (DRDO) to meet the requirements of the Armed Forces.

Source: TH


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