Wednesday, 19 Aug, 2026
The list covers a wide range of equipment and components, including line-replaceable units, sub-systems, sub-assemblies, spares, components and critical raw materials required for various defence platforms and systems. Image Source: IANS
The Defence Acquisition Procedure (DAP) 2020 and Defence Procurement Manual (DPM) 2025 have further sought to simplify procurement processes, increase indigenous content and expand opportunities for Indian private companies and MSMEs.
The Department of Defence Production (DDP) under the Ministry of Defence has notified the sixth Positive Indigenisation List (PIL), comprising 405 strategically important defence items with an estimated business potential of Rs 3,070 crore. The move marks another significant step in the government's efforts to reduce India's dependence on imported military equipment and expand the country's domestic defence manufacturing base.
Of the 405 items included in the latest list, 16 are meant for the Indian Coast Guard (ICG), while 389 relate to Defence Public Sector Undertakings (DPSUs). The list covers a wide range of equipment and components, including line-replaceable units, sub-systems, sub-assemblies, spares, components and critical raw materials required for various defence platforms and systems. By bringing these items under the indigenisation framework, the government is seeking to gradually replace imports with products manufactured within India.
The scope of the sixth PIL extends across several major categories of military equipment. It includes components associated with key air platforms such as the Advanced Light Helicopter, Light Utility Helicopter, Su-30MKI, Light Combat Aircraft and the AL-31FP engine. Armoured platforms, including the T-72, T-90 and BMP-II, have also been covered. The list further encompasses equipment and components linked to warships, Konkurs-M and Invar missile systems, MRSAM, radars, sonars, fire-control systems and satellite communication systems, besides High Explosive Anti-Tank ammunition and other critical defence equipment.
Each item carries an indicative timeline for indigenisation, providing industry with greater clarity on the requirements and expected timeframe for domestic development. Once these products are successfully developed, they will be procured from Indian manufacturers, creating additional business opportunities across the defence industrial ecosystem. This is expected to particularly benefit micro, small and medium enterprises (MSMEs), start-ups and other private-sector firms seeking to enter or expand their presence in defence manufacturing.
The indigenisation process will be pursued through several routes, including the government's ‘Make’ procedure and in-house development by DPSUs and the Indian Coast Guard. At the same time, greater participation from private industry is being encouraged to widen the industrial base and bring new technologies, capabilities and manufacturing expertise into the sector.
The sixth PIL is part of a broader effort under the Aatmanirbhar Bharat initiative to build a self-reliant defence manufacturing ecosystem. Rather than focusing only on the production of complete platforms, the government's indigenisation drive increasingly encompasses the components, sub-systems, raw materials and technologies that form the backbone of the defence supply chain. This approach is intended to reduce vulnerabilities arising from import dependence while strengthening India's ability to maintain and upgrade its military equipment domestically.
A key instrument supporting this effort is the SRIJAN Defence Portal, launched by the DDP in August 2020. The portal functions as a dedicated platform connecting DPSUs and service headquarters with Indian industry for the indigenous development and production of defence equipment. Up to June 2026, more than 33,000 defence items had been offered for indigenisation through the portal by DPSUs and Service Headquarters. Of these, 5,012 items were notified under the first five Positive Indigenisation Lists.
The wider indigenisation programme has already produced measurable results. More than 15,700 defence items have been successfully indigenised over the past five years, generating an estimated import substitution value of around Rs 9,000 crore. In addition, DPSUs had placed procurement orders, including through in-house production, worth approximately Rs 10,000 crore with domestic vendors up to March 2026. These developments point to the growing integration of Indian suppliers into the country's defence manufacturing ecosystem.
The expansion of domestic manufacturing has also been reflected in India's overall defence production figures. Defence production reached a record Rs 1.78 lakh crore in FY 2025-26, registering annual growth of 15.6 percent over Rs 1.54 lakh crore in the previous financial year. The increase becomes even more significant when viewed over a longer period. Defence production has more than doubled from Rs 84,643 crore in FY 2020-21 and has expanded almost fourfold from Rs 43,746 crore in FY 2013-14.
India’s Defence production (INR Crore)
Source: Department of Defence Production, Ministry of Defence
The private sector has emerged as an increasingly important contributor to this expansion. DPSUs continue to account for nearly three-fourths of total defence production, but private companies contributed approximately Rs 42,000 crore in FY 2025-26, accounting for around 24 percent of overall output. The rising contribution of private industry reflects growing confidence in the country's defence manufacturing ecosystem and has helped broaden the industrial base, increase competition, promote technological innovation and improve manufacturing efficiency.
The strengthening of domestic production has been accompanied by a sharp rise in defence exports. India's defence exports reached an all-time high of Rs 38,424 crore in FY 2025-26, indicating growing international acceptance of Indian defence equipment, platforms and technologies. Improvements in manufacturing standards, product quality and production capacity have enabled Indian companies to enter new overseas markets while strengthening their position in existing ones. Beyond generating foreign exchange, higher defence exports are also helping establish India as an emerging supplier of reliable and cost-effective defence systems.
India’s Defence exports (INR Crore)
Source: Department of Defence Production, Ministry of Defence
This transformation has been supported by a series of policy and procurement reforms aimed at creating a more favourable environment for domestic manufacturing. The Aatmanirbhar Bharat initiative has sought to reduce India's reliance on imported military equipment while developing indigenous capabilities across the defence value chain. Positive indigenisation lists, procurement provisions favouring domestic manufacturers, greater opportunities for private companies, and dedicated support for innovation and defence start-ups have collectively altered the structure of India's defence industrial sector.
The Defence Acquisition Procedure (DAP) 2020 and Defence Procurement Manual (DPM) 2025 have further sought to simplify procurement processes, increase indigenous content and expand opportunities for Indian private companies and MSMEs. At the technology development end, the Defence Research and Development Organisation (DRDO) has continued to play a central role in developing advanced defence technologies and working with industry to translate these technologies into operational systems.
The Defence Acquisition Council (DAC), the country's apex defence procurement body, has also emerged as a major driver of the indigenisation effort. Through reforms under DAP 2020, the DAC has placed greater emphasis on indigenous procurement, domestic manufacturing and higher levels of indigenous content. It has accorded Acceptance of Necessity (AoN) for DRDO-designed and Indian industry-manufactured systems worth more than Rs 6 lakh crore, with several of these systems already inducted or currently under induction.
Among the major approvals are 97 Light Combat Aircraft Tejas Mk-1A fighter jets worth around Rs 62,000 crore and 156 Light Combat Helicopters (LCH) Prachand valued at approximately Rs 62,700 crore, along with 26 Rafale Marine aircraft. Such procurements provide large and predictable orders to Indian industry while simultaneously strengthening domestic manufacturing capabilities and encouraging companies to invest in production capacity, technology and skilled manpower.
The government's push for indigenous defence production has also been backed by a substantial increase in defence spending. India's overall defence budget has risen from Rs 2.53 lakh crore in FY 2013-14 to Rs 7.85 lakh crore in FY 2026-27, reflecting the sustained focus on military preparedness, modernisation and strategic self-reliance. Capital expenditure has increased from Rs 94,587.95 crore in 2014-15 to Rs 2.19 lakh crore in 2026-27. Capital expenditure represents the investment component of the defence budget, supporting the acquisition, modernisation and creation of major military assets and thereby contributing to the development of future defence capabilities.
Source: Union Budget Documents
Taken together, the expansion of defence production, rising exports, growing private-sector participation and successive rounds of positive indigenisation indicate a broader shift in India's defence industrial strategy. The focus is increasingly moving beyond simply purchasing military equipment to developing the domestic industrial capacity required to design, manufacture, maintain and upgrade it. The sixth Positive Indigenisation List adds another 405 items to this effort and is expected to create fresh opportunities for Indian industry while strengthening the country's long-term objective of building a more self-reliant and resilient defence manufacturing ecosystem.
