PIB Summaries 23 July 2024

CONTENTS

1. Ministry of Defence Announces Fifth Positive Indigenisation List
2. Padma Awards

Ministry of Defence Announces Fifth Positive Indigenisation List

Context:

The Ministry of Defence (MoD) has recently issued a fifth Positive Indigenisation List (PIL) that includes various defence items. This initiative is part of the effort to boost self-reliance, minimize imports, and promote the domestic defence sector in India.

Relevance:

GS III: Defence

Dimensions of the Article:

1. Positive Indigenisation List (PIL)
2. Key Highlights of the Fifth Positive Indigenisation List
3. Need for Indigenisation of Defence in India
4. Status of Indigenisation in the Defence Sector

Positive Indigenisation List (PIL)

Overview

• Purpose: The PIL is a list of items that Indian armed forces can only purchase from domestic manufacturers, including private sector companies and Defence Public Sector Undertakings (DPSUs).
• Introduced By: Defence Acquisition Procedure (DAP) 2020.
• Objective: Focus on import substitution for major systems, platforms, weapon systems, sensors, and munitions, aiming to enhance self-reliance in the defense sector.

Progress and Current Status

• Initial Launch: The first PIL was introduced in August 2020.
• Current Status: There are now 4,666 items on the PIL.
• Indigenisation Achievements:
  • Items Indigenised: 2,972 items with an import substitution value of Rs 3,400 crore.
  • Total Defence Items Offered: Over 36,000 items.
  • Items Indigenised in Last Three Years: More than 12,300 items.
  • Orders Placed on Domestic Vendors: Rs 7,572 crore.

Key Highlights of the Fifth Positive Indigenisation List

• Number of Items: 346 items.
• Aim: Advance self-reliance (Aatmanirbharta) in defense and reduce import dependence.
• Eligibility: Items must be procured from the Indian industry, including Micro, Small, and Medium Enterprises (MSMEs) and startups.
• Types of Items: Includes Line Replacement Units (LRUs), systems, sub-systems, assemblies, sub-assemblies, spares, components, and raw materials.
• Availability: The list is accessible on the MoD’s Srijan portal, which helps DPSUs and service headquarters (SHQs) offer items for indigenisation to private industries.
• Indigenisation Value: Expected import substitution value of Rs 1,048 crore.
• Future Plans: The MoD plans to expand the list annually up to 2025, aiming to increase the number of indigenised items.

Need for Indigenisation of Defence in India

• Current Status: India is the world’s largest arms importer, accounting for 9.8% of global arms imports between 2019 and 2023.
• Strategic Autonomy: Heavy reliance on foreign arms compromises India’s strategic autonomy. Indigenisation helps reduce dependency and ensures self-reliance in critical defense technologies.
• Geopolitical Risks: Indigenous production reduces risks during geopolitical tensions by ensuring uninterrupted supply of defense equipment.
• Political Leverage: A self-reliant defense industry enhances India’s position in global negotiations and defense collaborations.
• Economic Benefits:
  • Job Creation: Supports domestic industry and fosters innovation.
  • Foreign Exchange: Reduces outflow of foreign exchange, contributing to economic stability.
  • Cost-Effectiveness: Indigenous production can lower procurement costs, maintenance, and logistical challenges.
  • Sustainable Development: Ensures that defense industry growth aligns with national interests and environmental considerations.

Status of Indigenisation in the Defence Sector

Defence Exports

• Record Exports: In FY 2023-24, defence exports reached a record Rs 21,083 crore (approx. USD 2.63 billion), marking a 32.5% increase from the previous fiscal year.
• Long-term Growth: Defence exports have increased 31-fold over the past 10 years compared to FY 2013-14.
• Contribution: The private sector has contributed about 60% to this growth, while Defence Public Sector Undertakings (DPSUs) have contributed approximately 40%.

Key Achievements and Developments

• Advanced Systems: Significant advancements include the 155 mm Artillery Gun ‘Dhanush’, Light Combat Aircraft ‘Tejas’, INS Vikrant (Aircraft Carrier), and the Advanced Towed Artillery Gun (ATAG) howitzer.
• Policy Reforms: Growth in the sector is attributed to policy reforms, ‘Ease of Doing Business’ initiatives, and digital solutions provided by the Government to promote defence exports.

Indigenisation Impact

• Reduction in Foreign Procurement: Expenditure on foreign defence procurement has decreased from 46% to 36% over the past four years, indicating the positive impact of indigenisation efforts.
• Domestic Procurement Share: The share of domestic procurement in total defence procurement has increased from 54% in 2018-19 to 68% in the current year.
• Private Industry Allocation: 25% of the defence budget is now allocated for procurement from private industry.

Production Growth

• Value of Production: The value of production by public and private sector defence companies has risen from Rs 79,071 crore to Rs 84,643 crore in the past two years, reflecting a significant growth in the sector’s capacity and output.

Padma Awards

Context:

Nominations/recommendations for the Padma Awards 2025 to be announced on the occasion of Republic Day, 2025 have begun from 01st May 2024. The last date for nominations for Padma Awards is 15th September, 2024.

Relevance:

Facts for Prelims

Dimensions of the Article:

1. The Padma Awards
2. About Bharat Ratna

The Padma Awards

• The Padma Awards are announced annually on the eve of Republic Day (26th January).
• There are 3 Padma Awards:
  • Padma Vibhushan (for exceptional and distinguished service),
  • Padma Bhushan (distinguished service of higher-order) and
  • Padma Shri (distinguished service).
• The Awards are given in various disciplines/ fields of activities, viz.- art, social work, public affairs, science and engineering, trade and industry, medicine, literature and education, sports, civil service, etc.
• The Awards are conferred on the recommendations made by the Padma Awards Committee, which is constituted by the Prime Minister every year.
• The total number of awards to be given in a year (excluding posthumous awards and to NRI/foreigners/OCIs) should not be more than 120.

Is it a title?

• The award does not amount to a title and cannot be used as a suffix or prefix to the awardees’ name.
• Article 18 clause 1- Abolishes titles and makes four provisions in that regard: It prohibits the state from conferring any title (except a military or academic distinction) on anybody, whether a citizen or a foreigner.

About Bharat Ratna

• Bharat Ratna is the highest civilian award of the country.
• Bharat Ratna is awarded in recognition of exceptional service/performance of the highest order in any field of human endeavour.
  • Recommendations for Bharat Ratna are made by the Prime Minister to the President of India.
  • Only 3 Bharat Ratna Awards can be given in a year.

Therefore:

• Bharat Ratna- 1st degree of honour
• Padma Vibhushan- 2nd degree of honour
• Padma Bhushan- 3rd degree of honour
• Padma Shri- 4th degree of honour