>I ame shears: /* Negative import list */

2021-06-16T07:53:53Z

Negative import list

New page

{{Short description|Overview of sector}}
{{Use dmy dates|date=November 2019}}
{{Use Indian English|date=February 2016}}
[[File:Light Combat Helicopter Aero India 2013.jpg|thumb|[[HAL Light Combat Helicopter]] ]]
[[File:Two HAL Tejas flying in formation (cropped).jpg|thumb|[[HAL Tejas|Tejas]]]]
The '''defence industry of India''' is a strategically important sector in [[India]].<ref>{{Cite web|title = The seven homegrown firms fighting over India's $620 billion defence market|url = http://qz.com/346941/the-seven-homegrown-firms-fighting-over-indias-620-billion-defence-market/|website = Quartz|access-date = 12 November 2015|language = en-US}}</ref> India has one of the world's largest military forces with a strength of over 14.4 [[lakh]] (1.44 million) active personnel. It has the world's largest volunteer military of over 51 lakh (5.1 million) personnel.<ref>{{Cite web|title=29 Largest Armies In The World|url=https://www.worldatlas.com/articles/29-largest-armies-in-the-world.html|access-date=5 September 2019|website=WorldAtlas|language=en}}</ref> The total budget sanctioned for the Indian military for the financial year 2021 is {{INRConvert|4.78|lc|lk=on|year=2020}}.<ref>{{Cite web|date=4 February 2021|title='Small increase': Chinese state media takes a dig at India's defence budget|url=https://www.businesstoday.in/union-budget-2021/small-increase-chinese-state-media-takes-dig-india-defence-budget/story/430294.html|url-status=live|access-date=2021-03-25|website=Business Today}}</ref><ref>{{Cite book|last=IISS|date=17 January 2018|title=The Military Balance 2009|doi=10.4324/9781351225946|isbn=9781351225946}}</ref> It has the third largest annual defence budget behind USA (US$732 b) and China (US$261 b). It is the second largest defence importer behind Saudi Arabia making up 9.2% of global arms import. India has a domestic defence industry of which 80% is government owned. The public sector includes [[Defence Research and Development Organisation|DRDO]] and its 50 labs, 4 defence shipyards, 5 defence [[Public sector undertakings in India|PSUs]] and 41 [[Ordnance Factory Board|ordnance factories]]. India has a new defence procurement, acquisition and manufacturing policy to reduce imports and enhance domestic manufacturing.<ref name="Up2020">[https://timesofindia.indiatimes.com/india/govt-comes-out-with-draft-defence-production-policy-to-boost-indigenous-weapons-exports/articleshow/77336027.cms], Times of India, 3 Aug 2020.</ref>

"''Defence Production Policy of 2018''" (DPrP-2018) has a goal of becoming among the top 5 global producers of the [[aerospace manufacturer|aerospace]] and defence manufacturing with annual export target of US$5 billion by 2025.<ref name=mind10>[https://conradcourier.com/india-plans-to-be-among-top-5-defence-producers/ India plans to be among top 5 defence producers], Conrad Courier, 5 November 2019.</ref><ref name="g2018">{{cite news |title=Nearly half of US arms exports go to the Middle East |url=https://www.theguardian.com/world/2018/mar/12/nearly-half-of-us-arms-exports-go-to-the-middle-east |access-date=16 October 2018 |publisher=Guardian |date=12 March 2018}}</ref> 12% of worldwide arms exports (by value) reach India.<ref name="sipri">{{cite web |title=Trends in international arms transfers 2017 |url=https://www.sipri.org/publications/2018/sipri-fact-sheets/trends-international-arms-transfers-2017 |website=sipri.org |publisher=SIPRI |access-date=16 October 2018}}</ref> India domestically produces only 45% to 50% of defence products it uses, and the rest are imported.<ref name=mind1/> India's [[military–industrial complex]] has had little success and only recently private sector was allowed to enter the defence production.<ref name=mind3/> India's defence exports were ₹4,682 crore (US$0.66 billion) in 2017–2018 and ₹10,500 crore (US$1.47 billion) in 2018–2019, of 2018–2019 exports India's 8 Defence Public Sector Undertakings (DPSU) and 41 Ordnance Factories (OF) contributed ₹800 [[crore]] (7.6% of total defence exports).<ref name=mind10/> During 2014-2018 [[India]] was the world's second largest defence importer.<ref>{{Cite web|title=India is world's second largest arms importer|url=https://www.thehindu.com/news/national/india-is-worlds-second-largest-arms-importer/article26502417.ece|url-status=live|archive-url=https://web.archive.org/web/20200505170645/https://www.thehindu.com/news/national/india-is-worlds-second-largest-arms-importer/article26502417.ece|archive-date=5 May 2020|website=The Hindu}}</ref>

== Military budget ==
{{See also|Military budget of India}}The military budget of India is about 1.49% for year 2018–19 of the total [[Gross domestic product|GDP]].<ref>{{cite web |title=Military budget of India 2018 |url=https://idsa.in/issuebrief/defence-budget-2018-19-controlling-manpower-cost-lkbehera-020218 |website=idsa.in |publisher=IDSA |access-date=16 October 2018}}</ref> However, it spends nearly an equal amount in importing arms from other countries.

Its defence expenditure for the 2017–18 fiscal year, based on allotments by its [[Ministry of Finance (India)#Ministers|Ministry of Finance]] was 86,488 crores for defence capital and 2,96,000 crores for defence pensions.<ref>{{Citation|last=Rajya Sabha TV|title=FULL SPEECH: Finance Minister Arun Jaitley's Budget Speech {{!}} Union Budget 2017–18|date=1 February 2017|url=https://www.youtube.com/watch?v=hsMKW-pJIc0&t=1h9m4s|access-date=1 February 2017}}</ref>

Service/ department-wise allocation as a percentage of total defence estimates in 2017–18:
*[[Indian Army|Army]]: 55.9%
*[[Indian Air Force|Air Force]]: 22.5%
*[[Indian Navy|Navy]]: 14.6%
*DRDO: 5.7%
*DGOF: 0.8%
*DGQA: 0.5%
The [[Indian Army]] accounts for more than half of the total defence budget of India, with most of expenditure going to the maintenance of cantonments, salaries and pensions, instead of critical arms and ammunition.<ref>{{Cite web | url=https://www.investindia.gov.in/sector/defence-manufacturing |title = Defence Manufacturing}}</ref><ref>https://web.archive.org/web/20190103071510/https://www.investindia.gov.in/sector/defence-manufacturing</ref> As of 2019, there is 25% shortfall in the military's budget demand versus the actually budget allocation by the government.<ref name=mind3/> There are suggestion to use the military's land bank to generate more funds to bridge this gap for the modernisation of military with the latest equipment.<ref name=mind3>[https://economictimes.indiatimes.com/news/defence/view-why-unlocking-defence-land-bank-to-meet-militarys-needs-is-a-good-idea/articleshow/71911296.cms Why unlocking defence land bank to meet military's needs isn't a bad idea], The Economic Times, 4 November 2019.</ref> From November 2019, government exempted the imported defence equipment from the customs and import duties for a period of five year during which domestic production is unlikely to meet the technical demand of the forces.<ref name=mind4/> This will result in a savings of ₹25,000 crore (US$3.5 billion) which could be used for the modernisation of the forces.<ref name=mind4>[https://economictimes.indiatimes.com/news/defence/customs-gst-relief-to-give-rs-60000-cr-boost-to-defence/articleshow/71861506.cms Customs, GST relief to give Rs 60,000-cr boost to defence], The Economic Times, 2 November 2019.</ref>

== State orders ==
{{see also | :Category:Corruption_in_defence_procurement_in_India | l1= Corruption in defence procurement in India}}

India has been pushing for greater indigenisation of military hardware as India imports around 70% (by value) of its high-tech defence hardware such as aircraft, ships, submarines, missiles etc. mainly from [[Russia]], [[Japan]], [[Israel]] and [[United States]].<ref>{{Cite web|title=Arms race: India approves defence procurements worth $3.5 bn, says report|url=http://tribune.com.pk/story/738177/arms-race-india-approves-defence-procurements-worth-3-5-bn-says-report/|url-status=live|access-date=12 November 2015|website=The Express Tribune|language=en-US}}</ref>
{| class="wikitable"
|+Arms transfers of India<ref>{{Cite web|title=World Development Indicators {{!}} The World Bank|url=http://wdi.worldbank.org/table/5.7|access-date=2021-03-26|website=wdi.worldbank.org}}</ref>
! colspan="2" |Exports
(1990 $ millions)
! colspan="2" |Imports
(1990 $ millions)
|-
!2010
!2019
!2010
!2019
|-
|5
|115
|2,909
|2,964
|}
Compared to other branches of military, the Indian Army consumes 50% of defence budget, is least technology intensive and slowest to adopt the indigenisation of equipment, has multi-year long procurement cycle, and pre-purchase field trials last for several years sometimes without resulting in any procurement, for example soldier's hand held GPS enabled indigenous ''"Sathi"'' [[Personal digital assistant|PDA]] "Beta Project" was abandoned midway and soldiers still do not have a PDA.<ref name=mind8>[https://www.indiatoday.in/india-today-insight/story/why-the-army-s-changed-mindset-on-indigenous-technology-is-a-relief-1611391-2019-10-21 Why the army's changed mindset on indigenous technology is a relief], India Today, 21 October 2019.</ref> To expedite the development cycle of new technologies and to better fit the end user requirements, army has asked DRDO to take more army staff on deputation to be part of DRDO technology development project teams.<ref name=mind9>[https://liistudio.com/army-wants-drdo-to-take-in-more-of-its-personnel-on-deputation-give-them-more-access/16025/ NEWS Army wants DRDO to take in more of its personnel on deputation, give them more access], liistudio.com, 18 October 2019.</ref>

[[Indian Armed Forces|Indian forces]] are using numerous successful indigenous technologies produced by the DRDO, including [[Varunastra (torpedo)|Varunastra]], [[Maareech ATDS|Maareech]], [[USHUS (sonar)|Ushus]], [[Advanced Light Torpedo Shyena|Advanced Light Torpedo (TAL) Shyena]]; Electronic Warfare Technologies, radars, composite materials for LCA, AEW&C, [[Astra (missile)|Astra]], [[HAL Tejas|LCA Tejas]] by the Indian Airforce; [[Mission Shakti|ASAT]], [[BrahMos]], [[Nag (missile)|Nag missile]], SAAW, [[Arjun (tank)|Arjun MBT]] Mk 1A, 46 metre Modular Bridge, MPR, LLTR Ashwin by the army.<ref name=mind7>[https://www.ndtv.com/india-news/union-defence-minister-rajnath-singh-pushes-for-indigenisation-of-defence-equipment-2117431 Rajnath Singh Pushes For Indigenisation Of Defence Equipment], NDTV, 16 September.</ref>

== Arms Exports ==
{{see also|Indigenous Defence Equipment Exporters Association|Make in India | Startup India }}

India's track record as an arms exporter has been modest due to export restrictions on the manufacturing organisations like [[Ordnance Factory Board|OFB]].<ref>{{Cite web | url=https://www.indiatoday.in/magazine/defence/story/20060403-diplomatic-concerns-prompt-govt-to-abort-export-of-mine-protected-vehicles-to-iraq-783491-2006-04-03 |title = Diplomatic concerns prompt govt to abort export of Mine Protected Vehicles to Iraq}}</ref><ref>{{Cite web | url=https://ddpmod.gov.in/defence-exports |title = Defence Exports | Department of Defence Production}}</ref> [[Ordnance Factory Board|OFB]] exports Arms and Ammunition, Weapon Spares, Chemicals & Explosives, Parachutes, Leather and Clothing items to more than 30 countries worldwide e.g. [[Thailand]], [[Malaysia]], [[Indonesia]], [[Sri Lanka]], [[Bangladesh]], [[Germany]], [[Belgium]], [[Turkey]], [[Egypt]], [[Oman]], [[Israel]], [[Kenya]], [[Nigeria]], [[Botswana]], [[Chile]], [[Suriname]] and [[USA]].<ref>http://164.100.77.100/pages/customers</ref><ref>{{Cite web | url=https://www.thehindubusinessline.com/todays-paper/tp-others/tp-editorial-feature/Were-making-Ordnance-factories-future-ready-says-OFB-Chairman-Dimri/article20342141.ece | title=We're making Ordnance factories future ready, says OFB Chairman Dimri}}</ref>

However, due to liberal policies adopted by the [[Prime Minister of India|Prime Minister]] [[Narendra Modi]]'s government since 2014, there has been a substantial increase in India's defence exports. According to the latest official data given in the upper house of Indian Parliament - the [[Rajya Sabha]], India's defence export has jumped by 700% in just two years. The export authorisation went up from $213 million in FY 2016–17 to $1.5 billion in FY 2018-19 (April to March period).<ref name="defencestar.in">{{Cite web | url=https://www.defencestar.in/defence-industry/indias-defence-export-make-in-india-for-the-world-indias-defence-exports-jump-seven-fold-in-two-years/amp |title = Make in India for the world: India’s defence export jumps seven fold in two years |newspaper = Defence Star|date = 14 February 2020}}</ref>

In March 2011 [[New Delhi]] agreed to sell its first indigenously designed and built multi-role [[offshore patrol vessel]] (OPV) named Barracuda, to [[Mauritius]]. In March 2017, India finalised a deal with [[Myanmar]] for sale of indigenously developed lightweight torpedoes worth US$37.9 million. Similar naval platforms were sold to [[Sri Lanka]] and [[Vietnam]] as well.<ref>http://timesofindia.indiatimes.com/india/After-Mauritius-India-to-export-warships-to-Sri-Lanka/articleshow/45585454.cms</ref>

In Sep 2017, [[Ordnance Factory Board|Ordnance Factory Board (OFB)]] secured its biggest export order from [[UAE]] for the supply of 40,000 numbers of 155 mm artillery shells for ₹322 crore.<ref>{{cite web|url=https://www.livemint.com/Industry/Ujng65JNmdIJKyZR7F2LDI/India-looking-to-scale-up-military-hardware-exports.html|title=India looking to scale up military hardware exports|first=Arkamoy Dutta|last=Majumdar|date=30 November 2017|website=Mint}}</ref> In Aug 2019, [[Ordnance Factory Board|OFB]] received a second order from UAE to supply another 50,000 artillery shells.<ref>{{Cite news | url=https://economictimes.indiatimes.com/news/defence/in-its-largest-ever-export-order-ofb-to-supply-50000-bofors-shells-to-uae/articleshow/70501461.cms?from=mdr |title = In its largest ever export order, OFB to supply 50,000 Bofors shells to UAE|newspaper = The Economic Times|date = 3 August 2019|last1 = Pubby|first1 = Manu}}</ref>

== Organisations==
=== State-Run ===
{| class="wikitable"
!Name
!Specialization
!Revenue (As of 2015, except DRDO)
!Employees (As of 2015)
!Notes
|-
|[[Bharat Dynamics]]
|[[Ammunition]] and [[Missile]] systems
|₹3281 crores (US$470 million)
|3,183
|<ref>{{Cite web|url=http://bdl.gov.in/sites/default/files/BDL_Annual%20Report_Eng.pdf#overlay-context=annual-reports|title=BDL Annual Report|archive-url=https://web.archive.org/web/20160402111528/http://bdl.gov.in/sites/default/files/BDL_Annual%20Report_Eng.pdf#overlay-context=annual-reports|archive-date=2 April 2016|url-status=dead}}</ref>
|-
|[[Bharat Electronics]]
|[[Avionics]]
|₹7093 crores (US$1.0 billion)
|9,952
|<ref>{{Cite web|url=http://www.moneycontrol.com/stocks/reports/bharat-elec-announces-q4-fy15-results-969042.html|title=Bharat Elec – Announces Q4 & FY15 results – Currency Research Reports|website=moneycontrol.com|access-date=20 April 2016}}</ref>
|-
|[[Bharat Earth Movers]]
|[[Transport]]
|₹2978 crores (US$410 million)
|7,722
|<ref>https://www.bemlindia.in/writereaddata/Downloads/2017-18.pdf</ref>
|-
|[[Defence Research and Development Organisation]]
|Research and Development
| Annual Budget of 2018–19 of ₹17861 crores (US$2.6 billion)
|30,000
|<ref>{{Cite web|url=https://idsa.in/issuebrief/defence-budget-2018-19-controlling-manpower-cost-lkbehera-020218|title = Defence Budget 2018–19: The Imperative of Controlling Manpower Cost|access-date=24 February 2018}}</ref>
|-
|[[Garden Reach Shipbuilders & Engineers]]
|[[Shipbuilding]]
|₹1694 crores (US$250 million)
|3,133
|<ref>{{Cite web|url=http://www.globalsecurity.org/military/world/india/grse.htm|title=Garden Reach Shipbuilders & Engineers (GRSE)|last=Pike|first=John|website=globalsecurity.org|access-date=20 April 2016}}</ref><ref>{{Cite web|url=http://grse.nic.in/Annual_Report_13-14.pdf|title=Annual Report 2013-2014|archive-url=https://web.archive.org/web/20180106194355/http://www.grse.nic.in/Annual_Report_13-14.pdf|archive-date=6 January 2018|url-status=dead}}</ref>
|-
|[[Goa Shipyard]]
|[[Shipbuilding]]
|₹681 crores (US$99 million)
|
|<ref>{{Cite web|url=http://www.globalsecurity.org/military/world/india/goa-sy.htm|title=Goa Shipyard Ltd.|last=Pike|first=John|website=globalsecurity.org|access-date=20 April 2016}}</ref><ref>{{Cite web|url=http://www.goashipyard.co.in/pdf/annual-reports-2014-15.pdf|title=Goa Shipyard Annual Report}}</ref>
|-
|[[Hindustan Aeronautics Limited]]
|[[Aerospace manufacturer]]
|₹17753 crores (US$2.6 billion)
|32,108
|<ref>{{Cite web|url=http://hal-india.com/Common/Uploads/Finance/Annual-Report-2013-14-English.pdf|title=HAL India Annual Report}}</ref>
|-
|[[Mazagon Dock Limited]]
|Shipbuilding
|₹4399.16 crores (US$640 million)
|9,000
|<ref>https://mazagondock.in/writereaddata/pdf_doc/Annual_Reports/Annual_Report_English_2017-2018.pdf</ref><ref>{{Cite web|url=http://www.mazagondock.gov.in/newsite2010/index.htm|title=Mazagon Dock Shipbuilders Limited – Ship Builder to the Nation.|website=mazagondock.gov.in|access-date=20 April 2016|url-status=dead|archive-url=https://web.archive.org/web/20160419125020/http://www.mazagondock.gov.in/newsite2010/index.htm|archive-date=19 April 2016}}</ref>
|-
|[[Mishra Dhatu Nigam]]
|[[Metallurgy]]
|₹747 crores (US$110 million)
|852
|<ref>https://economictimes.indiatimes.com/mishra-dhatu-nigam-ltd/profitandlose/companyid-4499.cms</ref><ref>https://www.sebi.gov.in/sebi_data/attachdocs/apr-2018/1522924415143.pdf</ref><ref>{{Cite web |url=http://www.midhani.gov.in/ |title=::Mishra Dhatu Nigam Limited::Home::,superalloy, titanium, special steel industry |website=midhani.gov.in |access-date=20 April 2016 |url-status=dead |archive-url=https://web.archive.org/web/20160501140436/http://www.midhani.gov.in/ |archive-date=1 May 2016 }}</ref>
|-
|[[Ordnance Factory Board]]
|<span class="plainlinks">[[Equipment of the Indian Army|Defence Equipment and Support]]</span>
|₹23687.22 crores (US$3.5 billion)
|84,000
|<ref>https://pib.gov.in/newsite/PrintRelease.aspx?relid=188533</ref><ref>https://ddpmod.gov.in/about-department-defence-production</ref>
|-
|[[Cochin Shipyard|Cochin Shipyard Limited]]
|[[Shipbuilding]]
|₹25.44 billion (2017–2018, US$370 million)
|12,000
|
|}

=== Private companies ===
{{see also| Indigenous Defence Equipment Exporters Association}}
{{Dynamic list|date=March 2021}}
Following have been given defence manufacturing license (please help expand this partial list):

* [[Bharat Forge]]<ref name=mind6/>
* [[Kalyani Group]] is developing the [[DRDO Advanced Towed Artillery Gun System (ATAGS)]].<ref name=mind6/>
* [[Larsen & Toubro]]<ref name=mind6/>
* [[Tata Group]]<ref name=mind6/>
* [[SSS Defence]]

=== Other related===
* [[ISRO]], for [[aerospace manufacturer]]

== Domestic of defence manufacturing ==

=== Indigenisation===
In September 2019, DRDO formulated the ''"DRDO Policy and Procedures for Transfer of Technology"'' and released information on ''"DRDO-Industry Partnership: Synergy and Growth and DRDO Products with Potential for Export"''.<ref name=mind7/> During the Vibrant Goa Global Expo and Summit 2019 in October, DRDO signed [[technology transfer]] contracts with [[Make in India|16 Indian companies]], including [[Startup India|3 startups]], to produce products for the use by [[Indian Armed Forces]].<ref name="mind2" /> This included [[Shelf life|high shelf life]], high nutrition, [[Meal, Ready-to-Eat|ready-to-eat]] on-the-go food products to be consumed in the difficult terrain and bad weather.<ref name="mind2">[https://economictimes.indiatimes.com/news/defence/drdo-signs-pacts-on-transfer-of-technology-with-16-companies/articleshow/71652198.cms DRDO signs pacts on Transfer of Technology with 16 companies], The Economic Times, 18 October 2019.</ref> To boost the domestic defence production capability, Defence Minister [[Rajnath Singh]]'s November 2019 delegation included 50 Indian companies scouting for the Russian partners and joint ventures for the defence production in India.<ref name="mind5">[https://economictimes.indiatimes.com/news/defence/50-india-inc-representatives-to-accompany-rajnath-singh-to-russia-to-explore-jvs/articleshow/71829433.cms 50 India Inc representatives to accompany Rajnath Singh to Russia to explore JVs], The Economic Times, 31 October 2019.</ref> DRDO and [[ISRO]] have agreed to collaborate in India's crewed orbital spacecraft project called [[Gaganyaan]] during which DRDOs various laboratories will tailor their defence capabilities to suit the needs of ISRO's human space mission.<ref name="mind6">[https://economictimes.indiatimes.com/news/science/isro-drdo-sign-mous-for-gaganyaan-mission/articleshow/71171232.cms ISRO, DRDO sign MoUs for Gaganyaan mission], The Economic Times, 17 September.</ref> To become technology research and production leader, reduce reliance on the imports and increase self-reliance, DRDO Chief called for more collaboration with the industry, private sector, research and education institutes including [[Indian Institutes of Technology|IIT]]s and [[National Institutes of Technology|NITs]].<ref name="mind1">[https://economictimes.indiatimes.com/news/defence/drdo-chief-urges-for-indigenous-defence-production/articleshow/71350864.cms DRDO chief urges for indigenous defence production], The Economic Times, 28 September 2019.</ref>

===Make in India===
{{Main|Make in India}}
The Modi government in its first year cleared 39 capital procurement proposals, of which 32 proposals worth {{INRConvert|88900|c}} (or 96% of value of total proposals) were categorized as ''Buy (Indian)'' and ''Buy and Make (Indian)''—the top two prioritized domestic industry-centric procurement categories as per the defence procurement procedure (DPP).<ref>{{citation |title=Make in India: Big role for private firms in defence |url=http://www.livemint.com/Opinion/xdix0RjSNhvuX4QBeVSm7I/Make-in-India-Big-role-for-private-firms-in-defence.html |work=[[Mint (newspaper)|Mint]] |date=15 February 2016 }}</ref>

The government's policies to encourage domestic manufacturing and export of defence equipment under Prime Minister Narendra Modi's flagship scheme Make in India in Defence. It has already resulted in substantial growth of defence export from the country as it jumped by 700% in just two years, from $213 million in FY 2016–17 to $1.5 billion in FY 2018–19.<ref name="defencestar.in"/> Encouraged by this, the government set a target of achieving defence export worth ₹35,000 crore ($4.87 billion) in next four years.<ref>{{Cite web | url=https://www.defencestar.in/india-defence-news/defence-industry-india-defence-exports-to-double-in-next-four-years/amp |title = India’s defence export set to double in next four years to $4.86 billion |newspaper = Defence Star|date = 14 February 2020}}</ref>

In July 2015, the defence ministry eased export regulations and stopped demanding multiple assurances on end-use from foreign governments even for sale of components by Indian entities.<ref>{{citation|title=Make in India: How small tweaks in policy are drawing domestic and global firms to defence manufacturing |url=http://economictimes.com/news/defence/make-in-india-how-small-tweaks-in-policy-are-drawing-domestic-and-global-firms-to-defence-manufacturing/articleshow/51002555.cms |work=[[The Economic Times]] |date=16 February 2016 }}{{dead link|date=December 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

Some critics say that instead of encouraging the manufacturing of equipment in India, the Modi government has given financial powers to the Armed forces to purchase equipment up to ₹500 crores without the consultation of the Ministry.<ref>https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1582739</ref><ref>https://economictimes.indiatimes.com/news/defence/post-pulwama-government-grants-more-financial-powers-to-the-3-services-for-weapons/articleshow/68916823.cms?from=mdr</ref> This will further increase the types of weapons, their spares and components, cost of maintainability which will result in non-compatibility and standardisation problems in near future.

===FDI in Defence===
Even though Modi government has been trying hard to get FDI in defence sector by first raising the cap from 26% to 49% through automatic route and 100% through MoD's approval, whereby the investing foreign entity can have ownership up to 100% in the defence manufacturing, it has received a dismal response with a meagre investment of just ₹56 lacs (US$0.08 million) in 2014–15, ₹71 lac (US$0.10 million) in 2015–16, ₹7 lacs (US$0.01 million) in 2017–18 and ₹15 crores (US$2.18 million) during 2018–19.<ref name="economictimes.indiatimes.com">https://economictimes.indiatimes.com/news/defence/defence-industry-received-2-18-million-fdi-in-2018-19-government/articleshow/69960949.cms?from=mdr</ref>
{| class="wikitable"
|-
! Year !! Total FDI in Defence
|-
| 2014–15|| USD 0.08 million (₹56 lacs)
|-
| 2015–16|| USD 0.10 million (₹71 lac)
|-
| 2017–18|| USD 0.01 million (₹7 lacs)
|-
| 2018–19|| USD 2.18 million (₹15 crores) <ref name="economictimes.indiatimes.com"/>
|}

== Negative import list ==
An import embargo on 101 defence items was announced on 9 August 2020. Over a period of five years, the items will be prohibited from being imported.<ref>{{Cite web|last=Kaushik|first=Krishn|date=2020-08-10|title=Explained: What is the negative imports list for defence announced by Rajnath Singh?|url=https://indianexpress.com/article/explained/explained-what-is-the-negative-imports-list-for-defence-announced-by-rajnath-singh-6547318/|access-date=2020-08-11|website=The Indian Express|language=en}}</ref>
<br />On 31 May 2021 [[Government of India|GoI]] announced the ban on 108 items that were excluded from early list. This also includes roadmap of five years for the promotion of indigenous. The list was described as "2nd Positive List for indigenigsation" by the [[government]].<ref>https://www.indiatoday.in/amp/india/story/mini-uavs-mine-protected-vehicles-among-new-list-of-108-defence-items-banned-for-import-full-list-1809194-2021-05-31</ref><ref>https://www.newindianexpress.com/nation/2021/may/31/india-expands-negative-list-for-defence-imports-with-108-new-items-2310016.html</ref><ref>https://m.timesofindia.com/india/india-announces-second-progressive-arms-embargo-list-to-boost-domestic-defence-production/amp_articleshow/83119389.cms</ref><ref>https://www.business-standard.com/article/economy-policy/import-embargo-on-101-defence-items-would-encourage-self-reliance-pm-modi-121022201364_1.html</ref><ref>https://www.hindustantimes.com/india-news/govt-bans-import-of-108-defence-items-to-boost-selfreliance-101622486811296.html</ref>

== See also ==
* [[Military–industrial complex]]
* [[Space industry of India]]
* [[Economy of India]]

== References ==
{{Reflist|30em}}

[[Category:Defence industry of India| ]]

Defence industry of India - Revision history

WECElbert296866: reworked page after review and updated info based on references

Bot: robot: Create/upgrade articles. If there is a mistake please report on my talk page.

UpdateBot: robot: Update article (please report if you notice any mistake or error in this edit)

5.32.171.37: /* Arms Exports */

>I ame shears: /* Negative import list */