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Indigenisation & MoD dependence

Government Schemes & Missions · Sectoral missions

What it is

Positive indigenisation lists bar import of specified items, now covering over 500 systems and sub-systems, backed by a defence budget of roughly Rs 6.81 lakh crore. iDEX and ADITI fund private and start-up innovation

The Ministry of Defence is effectively the single domestic customer

Impact on industries

  • Import bans convert a large budget into guaranteed domestic demand, and order books at defence public sector firms run to several times revenue
  • iDEX and ADITI have opened a genuine private and start-up ecosystem, which the earlier public-sector monopoly did not permit
  • Single-customer dependence gives the ministry decisive control over pricing, specification and payment timing
  • Aero-engine technology remains imported, and the USD 5bn export target diversifies away from MoD but means competing against financed incumbents

Industries affected

Aerospace & Defense Explosives Ship Building Castings & Forgings-Regular-Traded Castings & Forgings-Trade-to-Trade & SME Shells

Related topics

Naval order book-to-revenueBusiness Metric: Industry Specific (Industrials & Materials) Defence & aerospace castingsCritical Product/Equipment/Process: Metals, Mining & Materials Defence indigenisationGovernment Schemes & Missions: Industry & Infrastructure Shipbuilding Financial AssistanceGovernment Schemes & Missions: Industry & Infrastructure SHANTI Act & private nuclear entryGovernment Schemes & Missions: Industry & Infrastructure Forging vs casting economicsBusiness Models: Industry Specific (Industrials & Materials)