Local Defence Firms To Thrive As India Releases Fifth Indigenisation List

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(Photo source: Bharat Electronics/Twitter)

Stocks of most defence companies ended higher on Thursday after the Department of Military Affairs released its fifth Positive Indigenisation List of 98 items the previous day.

Bharat Dynamics Ltd., Bharat Electronics Ltd., Paras Defence and Space Technologies Ltd., Hindustan Aeronautics Ltd., Astra Microwave Products Ltd., and Tata Motors Ltd. are among the companies whose stock rallied.

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Highly complex systems, sensors, and weapons and ammunition have been included in the list, and all these items are to be procured from indigenous sources, according to the Ministry of Defence on Wednesday.

This list lays special focus on the import substitution of components of major systems, besides important platforms, weapon systems, sensors, and munitions, which are being developed and likely to translate into firm orders in the next five to 10 years.

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Here's List Of Some Items In 5th PIL

  • Futuristic infantry combat vehicle

  • Articulated all-terrain vehicles

  • Remotely piloted airborne vehicles

  • Naval shipborne unmanned aerial system

  • Medium-upgrade, low-endurance class tactical drone

  • Electric light vehicle

  • Medium-range precision-kill system

  • Armoured fighting vehicle protection and countermeasures system

  • Integrated mobile camouflage system

  • Multifunction aviation ground equipment

"The items in the list will provide ample visibility and opportunity to the domestic industry to understand the trend and futuristic needs of the armed forces and create requisite R&D and manufacturing capacity within the country," the ministry said.

Companies that stand to benefit include Bharat Forge Ltd., Tata Motors, and Larsen & Toubro, which have previously also received some of these others. Other companies that stand to gain include Solar Industries India Ltd., Adani Defence and Aerospace, Data Patterns (India) Ltd., Astra Microwave, and IdeaForge Technology Ltd.

This is the ninth PIL released to date, following the four PILs released by the DMA that comprise 411 military items and the four PILs released by the Department of Defence Production that consist of 4,666 items.

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The PILs have signalled a strong resolve to promote a robust and self-reliant defence industry and cut down imports, the ministry said. "It also recognises the fact that the defence sector will be one of the key contributors to the nation's economy and growth in the next five to 10 years."

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