India bans 101 Defence items

On August 9, 2020, Defence Minister Raj Nath Singh announced that India has put ban on 101 items to boost indigenous production. The list of 101 items was prepared by the Defence Ministry. This is being done to make India self-reliant under Atma Nirbhar Bharat Abhiyan.

Highlights

The decision has been made to provide opportunity to the defence industries of the country to manufacture items in the embargoed list. The industries can adopt their own design or adopt technologies developed by DRDO.

Around 260 schemes are involved in the selected 101 items. They were contracted by the tri-services at a cost of Rs 3.5 lakh crores between 2015 and 2020. Also, contracts worth Rs 4 lakh crores are to be placed upon domestic industries in the next 6 to 7 years. Hence, this is of great boost to the domestic industries. This will help India become self-reliant.

Of the 101 items, almost Rs 1,30,000 crores are anticipated for army and Indian Air Force.

The embargo on the imports is to be implemented between 2020 and 2024. The Indian Army is to import wheeled 200 armoured fighting vehicle by December 2021. It is of worth Rs 5,000 crore.

Embargo is the official ban on trade and other commercial activity in the country.

Procurement

The Defence Ministry for the year 2020-21 has bifurcated the capital procurement as domestic and foreign capital procurement. A separate budget of Rs 52,000 crores has been create for domestic procurement.

Defence Procurement

The Defence Procurement Procedure, 2020 that was unveiled in March 2020 aims to increase indigenous manufacturing of defence equipment. It is to support “Make in India” initiative. A new category of Buy (Global-Manufacture in India) has been introduced with minimum 50% indigenous content.

The Defence Procurement Procedure was promulgated in 2002 and has been revised several times since then to provide impetus to the growing domestic industry and achieve self-reliance in defence manufacturing.

The Procedure mainly contains processes that simplifies defence procurement procedure and help India achieve its self-reliance in meeting all the security needs of Indian Armed Forces.

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