Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
What is the negative imports list for defence announced recently?
It essentially means that the Armed Forces—Army, Navy and Air Force—will only procure all of these 101 items from domestic manufacturers.
- The manufacturers could be private sector players or defence Public Sector Undertakings (DPSUs).
Why was this policy needed? What will be the impacts?
As per Stockholm International Peace Research Institute, India has been the second largest importer between 2014 and 2019 with US$ 16.75 billion worth of imports during this period.
- The government wants to reduce the dependence on imported items in defence and give a shot in the arm to the domestic defence manufacturing industry.
- By denying the possibility of importing the items on the negative list, the domestic industry is given the opportunity to step up and manufacture them for the needs of the forces.
Sources: the Hindu.