**Executive Summary**
This document presents the Minister of Defence's response to questions raised in Lok Sabha regarding the government's initiatives to boost indigenous defence production under the 'Atmanirbhar Bharat' campaign. It outlines various policy initiatives and reforms undertaken to promote self-reliance in defence manufacturing, including prioritizing domestic procurement, incentivizing innovation, and streamlining acquisition procedures. The response was prepared for December 5th, 2025.
**Key Points / Main Content**
* **Atmanirbhar Bharat Initiatives:** The government has implemented several policy initiatives and reforms to encourage indigenous design, development, and manufacturing of defence equipment.
* **Prioritization of Domestic Procurement:** Defence Acquisition Procedure (DAP)-2020 prioritizes procurement of capital items from domestic sources. The ‘Buy (Indian-IDDM)’ category receives top priority.
* **Indigenization Lists:** Five 'Positive Indigenization Lists' have been issued, encompassing 509 items of services and 5012 items from Defence Public Sector Undertakings (DPSUs), with import embargoes beyond specified timelines.
* **SRIJAN Portal:** The SRIJAN portal has been launched to facilitate indigenization by Indian Industry, including MSMEs.
* **Industrial Licensing:** The industrial licensing process has been simplified with longer validity periods.
* **Foreign Direct Investment (FDI):** FDI policy has been liberalized, allowing up to 74% FDI under the automatic route and up to 100% under the government route.
* **Make Procedure:** Simplification of Make Procedure.
* **Innovation Schemes:** Innovations for Defence Excellence (iDEX) and Acing Development of Innovative Technologies with iDEX (ADITI) schemes are launched to foster innovation & technology development.
* **Offset Policy Reforms:** Reforms in Offset policy with thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers.
* **Defence Industrial Corridors:** Two Defence Industrial Corridors are being established in Uttar Pradesh and Tamil Nadu.
* **Technology Transfer:** Technology developed by DRDO is transferred to industries through Licensing Agreement for Transfer of Technology (LAToT) and Development cum Production Partner (DcPP).
* **Test Facility Support:** Providing Test Facility Support to Industries in DRDO labs.
* **Technology Development Fund (TDF):** Launch of Technology Development Fund (TDF) which provides financial support to Indian industries for design and development of Innovative Defence Products.
* **DRDO Patents:** Providing details of DRDO Patents available on the DRDO website for industries to use free of cost.
* **Scientific and Technological Support:** Providing Scientific and Technological support to industries by DRDO.
* **Defence Production & Export Promotion Policy (DPEPP):** Defence Production & Export Promotion Policy (DPEPP) 2020 was only at the draft stage and not finalised.
* **Amendments to DAP 2020:** The Defence Acquisition Procedure (DAP) 2020 has been amended to favor Indian industries, prioritizing indigenous content and streamlining acquisition procedures for MSMEs and Startups.
**Impact Analysis**
**Indigenous Defence Manufacturers (including MSMEs and Startups):**
* **Impact:** Increased opportunities for design, development, and manufacturing of defence equipment; financial and technological support through various schemes and initiatives.
* **Action Required:** Leverage available schemes, technology transfer agreements, and resources to enhance their capabilities and participate in domestic defence production.
**Defence Public Sector Undertakings (DPSUs):**
* **Impact:** Focus on indigenization of defence equipment and components, with import embargoes on items included in the positive indigenization lists.
* **Action Required:** Develop and implement strategies to indigenize the listed items within the specified timelines to reduce import dependence.
**DRDO:**
* **Impact:** Focus on providing technology transfer and support to industries for the development and production of defence equipment.
* **Action Required:** Facilitate technology transfer through LAToT and DcPP agreements; provide scientific and technological support to industries.
Key Entities Referenced
Atmanirbhar Bharat: Campaign focused on promoting self-reliance in defence manufacturing.
Defence Acquisition Procedure (DAP)-2020: A procedure prioritizing procurement of capital items from domestic sources, favouring indigenous procurement.
Ministry of Defence: The primary governmental body overseeing defence production.
Innovations for Defence Excellence (iDEX): Scheme designed to foster innovation and technology development in the defence and aerospace sectors, including iDEX (ADITI).
Uttar Pradesh and Tamil Nadu: Locations of two Defence Industrial Corridors established to develop a domestic supply chain and strengthen the defence manufacturing ecosystem.
GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
DEPARTMENT OF DEFENCE PRODUCTION
LOK SABHA
UNSTARRED QUESTION NO. 1070
TO BE ANSWERED ON 05TH DECEMBER, 2025
DEFENCE PRODUCTION AND EXPORT PROMOTION POLICY
1070. SHRI RAMASAHAYAM RAGHURAM REDDY:
Will the Minister of DEFENCE be pleased to state:
(a) whether the Government has launched any initiatives to boost indigenous production of
defence equipment under the 'Atmanirbhar Bharat' campaign;
(b) if so, the details thereof along with the key components of the Defence Production and Export
Promotion Policy (DPEPP) 2020;
(c) whether any financial incentives or subsidies is provided to indigenous manufacturers;
(d) if so, the details thereof and if not, the reasons therefor;
(e) whether the Government has made any amendments to the Defence Acquisition Procedure
(DAP) favouring domestic procurement; and
(f) if so, the details thereof and if not, the reasons therefor?
A N S W E R
MINISTER OF STATE (SHRI SANJAY SETH)
IN THE MINISTRY OF DEFENCE
(a) to (d) Several policy initiative and reforms have been taken by Government in the past
few years to encourage indigenous design, development, R&D in manufacturing of defence
equipment, thereby boosting indigenous production of defence equipment under the ‘Atmanirbhar
Bharat’ campaign and promoting self-reliance in defence manufacturing in the country. These
policy initiatives and reforms, inter-alia, include: -
(i) According priority to procurement of capital items from domestic sources
under Defence Acquisition Procedure (DAP)-2020. In order to promote
Indigenous design and development of defence equipment ‘Buy {Indian-
IDDM (Indigenously Designed, Developed and Manufactured)} category
has been accorded top most priority in Defence Acquisition Procedures-
2020 for procurement of capital equipment.
…2/--2-
(ii) Notification of five ‘positive Indigenization Lists’ of total 509 items of
Services and five ‘Positive Indigenization Lists’ of total 5012 items of
Defence Public Sector Undertakings (DPSUs), for which there would be
an embargo on the import beyond the timelines indicated against them.
(iii) Launch of an indigenization portal namely SRIJAN to facilitate
indigenisation by Indian Industry including MSMEs.
(iv) Simplification of Industrial licensing process with longer validity period.
(v) Liberalization of Foreign Direct Investment (FDI) policy allowing up to
74 % FDI under automatic route and upto 100% FDI under government
route.
(vi) Simplification of Make Procedure.
(vii) Launch of Innovations for Defence Excellence (iDEX) and Acing
Development of Innovative Technologies with iDEX (ADITI) schemes
involving startups & Micro, Small and Medium Enterprises (MSMEs) to
foster innovation & technology development in defence and aerospace.
(viii) Reforms in Offset policy with thrust on attracting investment and Transfer
of Technology for Defence manufacturing by assigning higher multipliers.
(ix) Establishment of two Defence Industrial Corridors, one each in Uttar
Pradesh and Tamil Nadu to develop domestic supply chain and
strengthen defence manufacturing ecosystem in the country.
(x) Transfer of Technology developed by DRDO to industries through
Licensing Agreement for Transfer of Technology (LAToT) and
Development cum Production Partner (DcPP).
(xi) Providing Test Facility Support to Industries in DRDO labs.
(xii) Launch of Technology Development Fund (TDF) which provides
financial support to Indian industries for design and development of
Innovative Defence Products.
(xiii) Providing details of DRDO Patents available on the DRDO website for
industries to use free of cost, supporting the vision of Aatmanirbhar Bharat.
(xiv) Providing Scientific and Technological support to industries by DRDO.
2. Defence Production & Export Promotion Policy (DPEPP) 2020 was only at the draft stage
and not finalised.
(e) & (f) Defence Acquisition Procedure (DAP) 2020 has been amended from time to time
in order to further tilt procurement in favour of Indian industries by mandating higher Indigenous
Content, prioritizing under Indian categories and streamlining acquisition procedures for MSMEs
and Startups.
****