Over the past six years, the Indian government placed import restrictions on more than 900 defence items as part of a sustained push to strengthen domestic manufacturing and cut reliance on foreign suppliers.
According to a report by Kotak Institutional Equities, these restrictions were implemented through the Ministry of Defence’s Positive Indigenisation Lists (PILs). The PILs identify specific defence equipment and related items that must, over time, be sourced exclusively from Indian manufacturers.
The covered items span complete platforms, such as aircraft, helicopters and warships, as well as critical sub-systems, electronic units, components, spares and raw materials.
Data from the Ministry of Defence shows that between August 2020 and August 2026, the government notified six such long lists, covering a total of 914 items, with the first five lists adding 101, 108, 101, 101 and 98 items respectively and the sixth list contributing another 405 items, thereby taking the total coverage of import-restricted defence items beyond 900 over the six-year period.
Sixth PIL targets 405 strategic items worth over Rs 3,000 crore
The latest step in this strategy is the sixth Positive Indigenisation List, notified by the Department of Defence Production (DDP). This list places an eventual import ban on 405 strategically important defence items, with an estimated domestic business potential of approximately Rs 3,070 crore.
Once these items are successfully developed and qualified in India, defence procurement for them will be restricted to the domestic industry. The focus of this list is on deepening localisation within existing platforms. This will cover line-replaceable units (LRUs), sub-systems, sub-assemblies, spares, components and raw materials, rather than only targeting complete platforms.
Government sees major boost for Indian industry
Union Defence Minister Rajnath Singh earlier said the move will “expand opportunities for Indian industry, strengthen the domestic defence manufacturing ecosystem, promote investment and innovation, and help reduce dependence on imports.”
The policy is expected to benefit Indian defence manufacturers, especially those in defence electronics, aerospace, missile systems, naval platforms and land systems. By creating a predictable, long-term demand signal, the government aims to encourage private sector investment in advanced manufacturing, R&D and supply-chain capabilities, while improving supply security for the armed forces.
The import restrictions are designed to create steady demand for Indian defence manufacturers by ensuring that, once an item is listed, the armed forces increasingly source it from domestic companies. This approach reduces dependence on foreign suppliers, gives India greater control over critical spare parts and components, and opens up more business opportunities for Indian defence firms, including small and medium-sized manufacturers.
It also encourages higher investment in research and development, generates jobs in engineering, electronics, aerospace and precision manufacturing, and strengthens supply-chain security for the armed forces. The sixth list’s focus on components, sub-systems and raw materials is especially important because true self-reliance cannot be achieved by only assembling imported parts; a strong domestic supply chain for electronics, sensors, engines, communication systems and specialised materials is essential for a fully capable defence industry.
Here’s the 6-year timeline of restrictions:
First List: 101 items in August 2020
The first Positive Indigenisation List, notified on August 21, 2020, covered around 101 defence items.
The list included several major weapon systems and platforms, such as:
- Sniper rifles and 155mm artillery guns.
- Armoured fighting vehicles.
- Basic trainer aircraft.
- Light Combat Aircraft, including Tejas.
- Light Combat Helicopters.
- Conventional submarines.
- Frigates and corvettes.
- Surface-to-air missile systems.
- Land-based radars.
- Software-defined radios.
The first list marked a major step towards restricting imports of important defence equipment and creating demand for Indian manufacturers.
Second List: 108 items in May 2021
On May 31, 2021, the government added 108 more items to the indigenisation list.
The key items included:
- Utility and attack helicopters.
- Next-generation corvettes.
- Airborne Early Warning and Control aircraft.
- Tank powerpacks, including engines and transmissions.
- Radars designed for mountain operations.
- Medium-range surface-to-air missile systems.
- Anti-materiel rifles.
- Guided bombs and missiles.
This list expanded the policy to include aviation systems, armoured-vehicle components, missile systems and advanced surveillance equipment.
Third List: 101 items in April 7, 2022
The main equipment included:
- Lightweight tanks.
- Mounted 155mm artillery gun systems.
- Extended-range rockets for the Pinaka multiple-launch rocket system.
- Naval utility helicopters.
- Offshore patrol vessels.
- Naval anti-ship missiles.
- Advanced lightweight torpedoes.
- Medium-altitude, long-endurance unmanned aerial vehicles.
- Loitering munitions.
- Anti-radiation missiles.
The list gave greater attention to unmanned systems, naval weapons and long-range artillery capabilities.
Fourth list: 101 items in October 19, 2022
The key categories were:
- Next-generation fighter aircraft.
- High-altitude protected mobility vehicles.
- Long-range anti-ship missiles.
- Maritime patrol aircraft.
- Ship-borne unmanned aerial vehicle systems.
- Mine-countermeasure vessels.
- Specialised vehicles, including armoured trucks and bulletproof vehicles.
- Military simulator systems.
This list covered advanced air, naval and land systems, along with training and simulation equipment.
Fifth list: This list was issued on October 4, 2023, and included around 98 items.
It covered:
- Futuristic Infantry Combat Vehicles.
- Future Main Battle Tanks.
- Quick Reaction Surface-to-Air Missile systems.
- Swarm drones and loitering drones.
- Heavyweight torpedoes.
- High-end radars.
- Electronic warfare equipment.
- Quantum communication systems.
- Specialised avionics.
- Defence test equipment.
The inclusion of electronic warfare, quantum communications, advanced avionics and drone technologies showed the government’s focus on emerging military capabilities.
Sixth list: The sixth and largest list was notified on August 17, 2026. It covers 405 strategically important items.
Unlike the earlier lists, which focused heavily on complete platforms and major weapon systems, the latest list concentrates largely on the components that go inside those platforms.
The items include:
- Line-replaceable units, or LRUs.
- Sub-systems.
- Sub-assemblies.
- Spares.
- Components.
- Raw materials.
These items are primarily used in defence electronics, aerospace systems, missile systems, naval platforms and land-based military systems.
Sixth list focuses on deeper localisation
The sixth Positive Indigenisation List is expected to create a domestic business opportunity of approximately Rs 31 billion over the next six years, up to financial year 2032. The list represents a shift in the government’s indigenisation strategy. Earlier lists focused more on complete platforms such as aircraft, helicopters, tanks, missiles and ships.
The latest list goes deeper into the supply chain by targeting the smaller but essential parts needed to operate and maintain these systems which means that the policy is no longer limited to building complete defence platforms in India. It is also aimed at ensuring that a larger share of the components used in those platforms is manufactured locally.
The current list is “more about deepening localisation within the existing platforms and less about platform-level procurement,” according to the assessment provided by Kotak and the defence ministry. This approach is expected to benefit Indian defence-component manufacturers and suppliers.
Defence electronics expected to benefit most
Defence electronics account for approximately 56 per cent of the 405 items in the sixth list. Aerospace-related items account for about 21 per cent. Together, these two segments make up the largest share of the latest list. The focus on electronics is significant because modern military platforms depend on advanced sensors, communication systems, navigation equipment, radar units, electronic warfare systems and control electronics.
Bharat Electronics is expected to be among the key beneficiaries of the new list. Smaller Indian companies supplying defence electronics, specialised components and aerospace parts could also gain business opportunities as foreign-sourced items are replaced with domestic products.
The policy could encourage larger defence companies to develop stronger relationships with Indian component makers. It may also support investment in testing facilities, precision manufacturing, specialised materials and research and development.
From platforms to parts
The six PILs show how India’s defence indigenisation policy has expanded over time as the first five lists covered major equipment and platforms, including fighter aircraft, helicopters, artillery guns, tanks, submarines, warships, missile systems, radars and drones. These restrictions created a clear market for Indian companies capable of designing and manufacturing complete defence systems.
The sixth list takes the next step by targeting the parts and materials that support those platforms. Critical LRUs, sub-assemblies, spares and raw materials may appear smaller than a fighter aircraft or a missile system, but they are essential for the operation, repair and long-term maintenance of military equipment.
Local production of these items can help the armed forces reduce waiting periods for replacement parts. It can also improve supply security during a crisis, when international supply chains may be disrupted.
Building a wider defence ecosystem
The government’s strategy is shifting from simply importing complete defence equipment to building a full defence manufacturing ecosystem inside India. This means not only designing platforms and producing weapons, but also making electronic systems, developing components, supplying spares and creating the raw-material base that defence companies need.
The sixth Positive Indigenisation List strengthens this approach by pushing for deeper localisation; its estimated Rs 31-billion business opportunity up to 2032 could encourage firms to invest in new production lines, testing labs and specialised technologies.
By restricting imports on more than 900 items over the last six years, India is expanding its indigenisation policy, aiming not just to manufacture major weapons and platforms at home, but also to produce the critical parts that keep them running. The long-term goal is a more self-reliant, technologically advanced and resilient defence industry that creates opportunities for both large companies and smaller suppliers.