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Defence Minister ’s Negative Import List and Its Implications on the Economy. Read All About it here!

On Sunday, Rajnath Singh, Defence Minister of the country came with a list of 101 items that the Defence Ministry will stop importing. The armed forces of the country will now procure the mentioned items from the domestic manufacturers and these manufacturers could be private sector players or defense Public Sector Undertakings (DPSUs).

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But Why?

India has been importing military goods from other countries for years now. It has always been among the top three defense importers in the world but now the Indian government wants to decrease its dependency on other countries of the world. According to the Stockholm International Peace Research Institute, India has been the second-largest defense importer between 2014 and 2019.

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Not only this, but the government also wants to support local players by providing them the opportunity. This way the private players and the DPSUs will develop capabilities.

Providing ample opportunities to the local manufactures, the government will also give a push to the ‘Atmanirbhar Bharat’ initiative.

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Defence Minister Rajnath Singh

Meanwhile, the government is also hoping that the defense manufacturing sector can play a leading role in boosting the economy, not just for the domestic market, but to become an exporter as well.

What does the negative import list include?

101 items that are mentioned in the negative import list, has a range of items. Ranging from simpler goods to advanced technologies like Wheeled Armoured Fighting Vehicle, Light Machine gun, 125 mm Fin Stabilised Armour Piercing DiscardingSabot (FSAPDS) New Generation Ammunition, Assault Rifle 7.62 x 39mmDec 202174.30 mm Ammunition for Infantry Fighting SystemsDec 202175, Mine Fragmentation, Mine Anti-tank, Mine Anti-Personnel Blast, Multipurpose Grenade, Inertial Navigation System for Ship Application, Conventional Submarines so on.

From when this policy will come into effect?

This new policy will not immediately come into effect, it may take a year to fully implement this. However, not all 101 items mentioned in the list will be embargoed altogether. It is a progressive list that will plan dump the goods as per the requirements.

As the list shows, of the 101 items mentioned 69 have an indicative embargo of December 2020.

 

Also read: The World Bank has approved $750-million loan to increase flow of finance MSMEs in India