India puts embargo on import of 101 defence items to boost 'self-reliance': Rajnath Singh

Akula

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Shri Rajnath Singh, Hon’ble Raksha Mantri inaugurated BEML’s Industrial Design Centre virtually in the presence of Hon’ble RRM; Secy. Defence; Secy. Defence (Production) amongst others. IDC will focus on implementing Human Factors,benchmarking & Ergonomics.

View attachment 55988

I am waiting for that new improved Tatra truck by BEML .
 

Akula

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not so soon, BEML GAUR is a south African company vehicle design. that company is a specialist in armoured vehicles.

Name of the company is here somewhere in DFI, had discussed this during defexpo 2020. I forgot the name.

this is some sort of babugiri, will have to wait for more details.

BEML better buyout the design exclusively, otherwise it would be awkward if the same design vehicle is seen in the hands of some African warlord.
I think you getting confused. Kalyani group showed South African company "Paramount group" M4 MPV in Defexpo.
Please correct me if I am wrong.
 

Okabe Rintarou

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I looked at this initiative but do not really understand it. Like these restrictions can be circumvented very easily (with some amount of mental gymnastics).

Let me elaborate with only 2 examples from my side as I am more familiar with these two:
1. LCA like fighter aircraft import is blocked; But then LCA is currently in light weight category. IA can always argue that F16/F21/Gripen E/C etc are medium weight category and hence restriction do not apply to them. F35 is single engine, so we cannot bring restriction with respective to single engine fighters as well.

2. LCH is light combat heli. But again IA/IAF can always argue that hey Apache is totally different heavy category helicopter. So we will buy 50 of them and give lolipop of 25 LCH orders until XXX is integrated/improved. In short this policy is no guarantee of support to home built systems and does nothing really.

The proof of the success of "Atmanirbhar: make in india" is orders.. improvement in R&D spending to make better products. Also in reality it make sense to import 70% (home)-30% (high end imported) complementing local platforms. Like ok we have Astra-1 (pretty good) but that does not mean we don't need Meteor/AIM-20 like long range BVR to maintain upper hand. Just giving example not applicable to all cases.

@porky_kicker I looked through some of your posts. Can you clarify my doubts if you have any clarity?
The list is just a means to an end. Think of the impact of all these measures together. Imagine, if this list keeps expanding (which it will) but at the same time, if Armed Forces and/or MoD babus somehow continue to favour imports by using whatever mental gymnastics. In that case, the share of budget earmarked for and publicly declared as being for domestic purchase will not grow as a proportion of the budget earmarked for imports. These two metrics (export list and import-domestic CAPEX budgets) will be publicly available. Hence people will be able to see the actual progress on indigenisation on the ground. No matter what mental gymnastics the corrupt try now, this data will be out for everyone (not just the CAG) to see. And that, I believe, is why this policy will be a true game changer.

Just a decade ago, there was an article about how Army's field artillery rationalization plan is in tatters and there is no Indian offering for artillery. Today, we have indigenous offerings in every category of Artillery. 10 years later, this policy might also enable significant change beyond what we can imagine right now. Because the principle of checks and balances created by this policy is strong and the mental gymnastics and GSQR fights now stand resolved to a large extent.
 

Sanglamorre

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So, are "emergency purchases" included in this? Otherwise there can be a flurry of imports by that clause everyone SHTF
 

cannonfodder

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The list is just a means to an end. Think of the impact of all these measures together. Imagine, if this list keeps expanding (which it will) but at the same time, if Armed Forces and/or MoD babus somehow continue to favour imports by using whatever mental gymnastics. In that case, the share of budget earmarked for and publicly declared as being for domestic purchase will not grow as a proportion of the budget earmarked for imports. These two metrics (export list and import-domestic CAPEX budgets) will be publicly available. Hence people will be able to see the actual progress on indigenisation on the ground. No matter what mental gymnastics the corrupt try now, this data will be out for everyone (not just the CAG) to see. And that, I believe, is why this policy will be a true game changer.

Just a decade ago, there was an article about how Army's field artillery rationalization plan is in tatters and there is no Indian offering for artillery. Today, we have indigenous offerings in every category of Artillery. 10 years later, this policy might also enable significant change beyond what we can imagine right now. Because the principle of checks and balances created by this policy is strong and the mental gymnastics and GSQR fights now stand resolved to a large extent.
I don't doubt that present GOI under modi is much better than MMS w.r.t indigenization. But really that is setting the bar very low. All I am pointing out is that these list serves no purpose unless IA/IAF/MoD are really backing the local designs and placing orders. I have spent enough time following defence news to know that armed forces will import if they want to. IA will spend 15+ years developing/testing Arjun tank and order 100-200 of them and say we don't need this anymore/not good enough.

So for me orders and more investment in local investment is the only criteria. This list and policy designed around this list is ambiguous and can be easily circumvented. local designs are definitely growing but not at pace which most members would like it to see. The onus is also on industry to provide good quality products. But we have seen some good solutions also getting side tracked in spite of Make in India slogans.. so the proof of pudding is in eating .
 

Okabe Rintarou

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I don't doubt that present GOI under modi is much better than MMS w.r.t indigenization. But really that is setting the bar very low. All I am pointing out is that these list serves no purpose unless IA/IAF/MoD are really backing the local designs and placing orders. I have spent enough time following defence news to know that armed forces will import if they want to. IA will spend 15+ years developing/testing Arjun tank and order 100-200 of them and say we don't need this anymore/not good enough.

So for me orders and more investment in local investment is the only criteria. This list and policy designed around this list is ambiguous and can be easily circumvented. local designs are definitely growing but not at pace which most members would like it to see. The onus is also on industry to provide good quality products. But we have seen some good solutions also getting side tracked in spite of Make in India slogans.. so the proof of pudding is in eating .
You are right. Lets wait and watch. Picture should become clearer by 2026. Could have been earlier, but first Covid delays, then delays in setting up private enterprises and finally the elections in 2024 mean that signing and deliveries of most projects could easily get delayed till 2026. Very pessimistic scenario, I know. But if this policy does even half its intended task, we should see a consistent purchase of munitions from Indian private enterprises regularly after 2026, thereby maintaing War Wastage Reserves at reasonable prices. That might ensure that this was the last time Indian military went in for panic buying at the time of a crisis, enough forex savings for more weapons procurement.
 

ezsasa

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In a tender/RFI released in 2019 the Indian Army has requested a total quantity of approximately 1800 Sniper Rifles alongwith telescopic sight and quantity 27 Lacs Sniper ammunition in one year. @OFB_India
has developed a 8.6 x 70 mm sniper rifle for this tender.
 

WolfPack86

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Modi's push for Atmanirbhar defence | India Today Insight
Prime Minister Narendra Modi today emphasised his government’s commitments to opening up the defence sector to reform during a webinar ‘Atmanirbhar Bharat-Defence Outreach’ organised by FICCI, the Department of Military Affairs (DMA) and the ministry of defence. “Our commitment towards self-sufficiency in defence production is not limited to talks or paperbound proposals, we have taken several steps to realise this,” said the PM.

The government has recently begun one of the most sweeping changes in the defence sector under its atmanirbhar (self-reliant) policy—the reboot of its failed Make in India defence programme from Modi’s first term is now being pushed directly by the Prime Minister’s Office. The defence ministry has, in the past few weeks, unveiled a series of reforms—from a decision to corporatise 41 government-owned ordnance factories, to getting the ministry to release a negative list of 101 items banned for import, and getting the DRDO to identify 108 products for which it would partner with indigenous industry to co-develop. The defence ministry has assured the Indian defence industry of orders worth Rs 400,000 crore in the next five to seven years. BJP-ruled states like Uttar Pradesh are pushing for defence corridors to attract defence firms to set up manufacturing facilities.

Modi’s unscheduled appearance at the webinar attended by key defence ministry, public sector and private industry representatives left no doubt in anyone’s mind as to the seriousness with which the government was pursuing defence reforms, or as to who was driving it. Participants at the webinar included defence minister Rajnath Singh, chief of defence staff General Bipin Rawat, secretary (defence production) Raj Kumar and the three service chiefs.

The most significant statement was by Raj Kumar when he said that “Indian vendor could mean a foreign subsidiary, joint ventures and fully-owned Indian companies.” This is being seen as an extension of the government’s decision in May this year to allow foreign investors to own up to 74 per cent stake in an Indian defence firm, up from the earlier 49 per cent.

The CEO of a private sector firm has called the move to consider foreign companies as Indian vendors a ‘most regressive step in Indian defence industry’, since it means foreign firms will now be able to enter and compete with Indian firms in categories like ‘buy Indian’ and ‘Indian designed developed and manufactured (IDDM)’, which were earlier reserved only for Indian companies. The executive says: “There is no incentive for Indian companies to do anything but partner with a foreign company since the capital that goes in will anyway pale in comparison to what the foreign companies have pumped into R&D over decades.”

A senior government official, who wished to not be named, says the policy would mean that foreign companies would set up their subsidiaries in India to import the equipment in sub sections and integrate them here to deliver to the defence ministry. “In times of war, these subsidiaries will supply only when their countries allow them to do so. This will be a disaster for Atmanirbhar Bharat.”

Rahul Chaudhry, chair, FICCI Homeland Security Committee, terms the arguments against bringing foreign companies in India as the ‘Bombay Club arguments of 1992’ (the argument by Indian industrialists at the dawn of India’s liberalisation against liberalisation and the entry of foreign firms).“What is required is value addition,” says Chaudhry. “Value addition is equal to jobs and to intellectual property. It is absolutely clear from the Make in India general financial rules (GFR) that the government has begun to talk about value additions in India and not about which company or equity holder is doing it.”
 

kunal1123

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Defence Ministry to release second list of banned imports to boost domestic production – Indian Defence Research Wing


2-3 minutes


SOURCE: MSN

Defence Ministry will issue a second list of arms and ammunitions that will be subjected to an import ban. Expected to be released by the end of this year, this list will aim to further strengthen India’s own defence industry by using embargoes on imports.
“A comprehensive list is in the making and would be issued by the end of this year,” a source in the central government told Aajtak and India Today. The list will have a large number of items and the three services are being consulted for preparation of arms and smaller items which can be produced and procured from within the country itself.
The first such list of negative arms imports was issued by the Defence Ministry on August 9. This list included a large number of high-tech items including artillery guns, submarines and light-weight combat aircraft.
Defence Minister Rajnath Singh and Prime Minister Narendra Modi have reiterated time and again their objective to boost indigenous defence production and develop a robust military industry within India. This, they say, will not only contribute to economic growth but will also help in creation of jobs many of which are lost owing to placement of orders to foreign vendors.
A number of indigenous manufacturers continue to urge the Centre to implement measures aimed at improving the defence production ecosystem within India.
Earlier this year, concerned officials briefed the PM about the negative arms import list before the same was made public. This list introduced an import embargo on 101 items beyond a given timeline to boost indigenisation of defence production.
It is estimated that contracts worth almost Rs 4 lakh crore will be allocated to the domestic defence industry within the next six to seven years as a direct result of this measure.
 

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