Negative Import List
Why in News?
- The Defence Ministry notified the second negative import list — now renamed as the ‘positive indigenisation list’— can now be only purchased from indigenous sources.
What is a Negative Import List (positive indigenisation list)
- 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).
Why the need?
- Not only does the list recognise the potential of the local defence industry, it will also invigorate impetus to domestic Research and Development by attracting fresh investment into technology and manufacturing capabilities.
- The list also provides an excellent opportunity for ‘start-ups’ as also Micro, Small and Medium Enterprises (MSMEs).
- 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.
- The government wants to reduce the dependence on imported items in defence and give a shot in the arm to the domestic defence manufacturing industry.
- By denying the possibility of importing the items on the negative list, the domestic industry is given the opportunity to step up and manufacture them for the needs of the forces.
- This will boost indigenisation of defence production and is in line with the government’s target to reach a turnover of USD 25 billion by 2025 through indigenously manufactured defence products.
- It is a big step towards self-reliance in defence under the Atmanirbhar Bharat initiative.
To read about Aatma Nirbhar Bharat:
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