On 31 August, a Lockheed Martin unit signed a pact with India’s Tata Advanced Systems Ltd to make the US’s Javelin anti-tank missiles locally. The deal came just two weeks after the defence ministry published its sixth Positive Indigenization List (PIL) seeking to localize over 400 items, including light tanks and electronics, worth over ₹3,000 crore.
How much, though, is actual local design and geopolitical independence? Mint explains.
Why is the latest PIL important?
The latest PIL is the sixth list issued by the ministry of defence to the country's public sector undertakings (PSU), as well as private defence manufacturers. A note by the department of defence production (DoDP)’s ‘Srijan’ local procurement platform said on 18 August that India procured over 15,700 items from local suppliers in five years, generating ₹10,000 crore in revenue for local vendors. The sixth and latest one, incidentally, is the biggest of the lot so far, with over ₹3,000 crore in local sourcing mandates. The size and maturity of the order are what make it important.
What is the extent of India’s defence localization?
The key to this is the country's draft Defence Acquisition Procedure (DAP). On 13 February, a 641-page draft DAP framework said that in future defence ministry procurement orders, New Delhi will look for a product’s design and patent itself to be locally owned. Further, the policy proposed that in any local orders placed by the Centre, at least 60% of a product’s overall components by value must be generated from within the country. The goal is to reduce the risk of falling prey to geopolitical sanctions. The policy, however, has not yet been notified and implemented, though consultations ended in March.
Which are the key companies indigenizing defence?
With ₹33,090 crore in annual operating revenue, Hindustan Aeronautics Ltd (HAL) is the country's largest defence PSU. Most top defence suppliers are PSUs, including Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd and Mazagon Dock Shipbuilders Ltd, among others. BEL was the largest awardee in the sixth PIL, bagging 227 orders out of the 405 localized items. Private defence suppliers to the Centre include Tata Advanced Systems, L&T Precision Engineering & Systems Ltd, Mahindra Defence Systems Ltd, and Adani Defence & Aerospace Ltd.
Where do other countries stand in defence autonomy?
By far, China is the undisputed global leader in independence and autonomy of defence production and design. A 2023 note by think tank Observer Research Foundation (ORF) estimated that Beijing had already achieved 92% local sourcing for its defence production requirements, including components for ballistics, aerospace and electronics. Russia, according to a 12 March Ukrainian foreign intelligence note, had 70% localization of finished defence equipment. The US, the world’s largest defence spender at $921 billion as of 1 January, ranked just lower at 69%, but is aiming for a minimum localization threshold of 75%, starting in 2029.
When can India start thinking about defence exports?
India is exporting defence equipment to strategic markets worldwide, but exports so far remain at a relatively smaller scale compared with the world’s three largest defence markets in the US, China and Russia. Government data estimated India’s defence exports at ₹38,424 crore ($4 billion) as of 2025-26. In comparison, US aerospace and defence exports hit $172.7 billion in 2025, with India’s defence exports at just over 2% of America’s. India, to boost localization and component supply chain, has struck partnerships, of which Tata’s partnership is a key example.