India Expands Defence Self-Reliance with 405 More Items on New Indigenisation List
By Suman Munshi | IBG NEWS
New Delhi, August 18, 2026: India has taken another significant step towards strengthening its domestic defence manufacturing capabilities, with the Department of Defence Production (DDP), Ministry of Defence, notifying the sixth Positive Indigenisation List (PIL) covering 405 strategically important defence items.
The newly notified list carries an estimated business potential of approximately ₹3,070 crore and includes a wide range of Line Replaceable Units (LRUs), sub-systems, sub-assemblies, spares, components and critical raw materials that are currently being targeted for indigenous development.
Of the 405 items, 16 relate to the Indian Coast Guard, while 389 have been identified by Defence Public Sector Undertakings (DPSUs).
Major Defence Platforms Covered
The latest list spans several key areas of India’s defence inventory. Items associated with major air, land, naval, missile and electronic warfare systems have been included.
The identified equipment covers platforms such as:
- Advanced Light Helicopter (ALH)
- Light Utility Helicopter (LUH)
- Su-30MKI
- Light Combat Aircraft (LCA)
- AL-31FP engine
- T-72 and T-90 tanks
- BMP-II armoured vehicles
- Warships
- Konkurs-M and Invar missile systems
- Medium Range Surface-to-Air Missile (MRSAM) systems
- Radars and sonars
- Fire-control systems
- Satellite communication equipment
- High Explosive Anti-Tank (HEAT) ammunition
- Other critical defence components and equipment
Greater Role for Indian Industry and MSMEs
The government has indicated that the items on the list will carry specific timelines for indigenous development. Once successfully developed within the country, their procurement will be undertaken from Indian industry.
DPSUs and the Indian Coast Guard will pursue indigenisation through different mechanisms, including the Make procedure and in-house development, with Indian private industry, particularly MSMEs and start-ups, expected to play an important role.
The move is intended not only to reduce India’s dependence on imported defence components but also to create a larger domestic market for technology development, manufacturing and innovation.
SRIJAN Portal Becomes a Key Enabler
The latest initiative builds on the Defence Production Department’s SRIJAN Defence Portal, launched in August 2020 to connect defence establishments with Indian industry for indigenous development and production.
Through the platform, Defence Public Sector Undertakings and Service Headquarters can offer equipment and components to domestic companies, including MSMEs and start-ups, for Indian development and manufacturing.
According to the government, more than 33,000 defence items had been offered for indigenisation through the SRIJAN platform by June 2026.
Of these, 5,012 items were part of the first five Positive Indigenisation Lists.
Import Substitution Crosses ₹9,000 Crore
The indigenisation drive has already produced measurable results.
More than 15,700 defence items have reportedly been successfully indigenised, generating an estimated import substitution value of around ₹9,000 crore over the past five years.
In another indicator of the growing domestic defence market, DPSUs had placed procurement orders—including in-house production orders—worth approximately ₹10,000 crore with domestic vendors up to March 2026.
A Larger Domestic Defence Manufacturing Ecosystem
The sixth Positive Indigenisation List represents another phase in India’s long-term effort to develop a stronger domestic defence-industrial base.
By moving progressively from imported components towards Indian-designed and Indian-manufactured systems, the initiative is expected to create opportunities for MSMEs, start-ups, established manufacturers and technology developers.
Beyond import substitution, the programme could help expand India’s defence supply chain, encourage investment in advanced manufacturing and promote indigenous research and development.
The broader objective under Aatmanirbhar Bharat is clear: build greater technological and manufacturing capability within India while creating a defence ecosystem capable of supporting the country’s armed forces with increasingly indigenous solutions.
