5th Positive Indigenisation List and Internal Security Plan | 19 Jul 2024

Source: PIB

Why in News? 

The Ministry of Defence (MoD) has recently notified a fifth Positive Indigenisation List (PIL) comprising defence items, aimed at boosting self-reliance and minimizing imports and encouraging the domestic defence sector. 

• Concurrently, recent developments underscore the need for India to craft a comprehensive internal security plan. As India's international stature grows and its economy strengthens, ensuring internal cohesion and addressing security challenges becomes paramount. 

What are the Key Highlights of the Fifth Positive Indigenisation List?

• Purpose and Scope: The fifth PIL comprises 346 items aimed at advancing Aatmanirbharta (self-reliance) in defence and reducing import dependence by Defence Public Sector Undertakings (DPSUs).
  • It ensures that these items are procured exclusively from the Indian industry, including Micro, Small, and Medium Enterprises (MSMEs) and startups.
    • Items include strategically important Line Replacement Units (LRUs), systems, sub-systems, assemblies, sub-assemblies, spares, components, and raw materials.
• Implementation: The list is available on the MoD’s Srijan portal, which provides a platform for DPSUs and service headquarters (SHQs) to offer defence items for indigenisation to private industries.
  • DPSUs like Hindustan Aeronautics Limited (HAL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), and others have initiated processes for issuing Expressions of Interest (EoIs) and Requests For Tender or Proposals (RFPs).
• Impact: The indigenisation of these items is expected to have an import substitution value worth Rs 1,048 crore.
  • The initiative provides assurance to the domestic defence industry, encouraging them to develop defence products without the risk of competition from imports.
• Future Goals: The MoD aims to continue expanding the list annually up to 2025, further increasing the number of items to be indigenised.
  • This incremental approach supports the long-term goal of achieving greater self-reliance in defence production.

What is the Status of Indigenisation Defence Sector?

• Rise In Exports: In FY 2023-24, defence exports reached a record Rs 21,083 crore (approx. USD 2.63 Billion), showing a 32.5% increase from the previous fiscal year.
  • Over the last 10 years, there has been a 31-fold increase in defence exports compared to FY 2013-14. 
  • The private sector and DPSUs have contributed about 60% and 40% respectively to this growth. 
  • This growth is attributed to policy reforms, 'Ease of Doing Business' initiatives, and digital solutions provided by the Government to promote defence exports.
• Achievements: The Indian defence sector has seen the production of several advanced systems, including the 155 mm Artillery Gun 'Dhanush', Light Combat Aircraft 'Tejas', INS Vikrant: Aircraft Carrier, and various other platforms and equipment, notably the Advanced Towed Artillery Gun (ATAG) howitzer.
• Reduction in Import Dependency: The expenditure on foreign defence procurement has decreased from 46% to 36% over the past four years, demonstrating the impact of indigenisation efforts in reducing reliance on imports.
• Growth in Domestic Procurement Share: The share of domestic procurement in total defence procurement has risen from 54% in 2018-19 to 68% in the current year, with 25% of the defence budget allocated for procurement from private industry.
• Value of Production: The value of production by public and private sector defence companies has increased from Rs 79,071 crore to Rs 84,643 crore in the past two years, reflecting significant growth in the sector's capacity and output.

What is the Need and Way Forward for an Internal Security Plan for India?

• National Security Doctrine (NSD): The country should have a NSD to address internal and external challenges. The National Security Advisory Board has worked on drafts, but they were never approved. 

  • It is important to have a consistent approach to internal security, especially during changes in government.

  • It will guide policy decisions and strategic actions, reducing ad-hoc responses and improving coherence in handling security issues.
• Internal Security Ministry: The Ministry of Home Affairs is too heavy and unwieldy, leading to delayed and inadequate attention to internal security matters. It is time to appoint a young, junior minister to independently handle internal security.
  • According to Article 355 in Constitution of India, the Union is responsible for protecting every State from external aggression and internal disturbance, and for ensuring that each State's government operates in accordance with the Constitution.
• Recent Issues in Jammu and Kashmir: The Home Minister claims terror incidents are down by 66% since the abrogation of Article 370, but recent attacks in Jammu show the situation is far from normal. 

  • The government needs to reorganise the security grid, restore statehood to J&K, and hold elections for the Assembly to address the objectives of the Pakistani deep state.

• Stabilizing the Northeast Region: The Prime Minister has described the Northeast as "a piece of our heart", but the region continues to face challenges. 

  • The 2015 Framework Agreement with the rebel Nagas has not been fully realized due to the National Socialist Council of Nagaland - Isak-Muivah's (NSCN-IM) demand for a separate flag and constitution. 

  • The government needs to ensure strict implementation of the ceasefire agreement and prevent rebel activities like extortion and forcible recruitment. 

  • Manipur is still struggling with ethnic conflicts and occasional violence, despite the formation of a multi-ethnic peace committee by the Home Ministry.

    • It's time for the Prime Minister to personally address these issues.

  • Additionally, addressing problems like illegal migration, drug trafficking, and arms smuggling would require a comprehensive approach.

• Naxal Problem: The Minister of State for Home Affairs reported in the Rajya Sabha that the "national policy and action plan" has led to a significant decrease in left-wing extremism (LWE) violence and its geographical influence. 

  • Violence and deaths have decreased by 73% since 2010, and the number of police stations reporting LWE-related violence has also decreased. 

  • With Naxals on the backfoot, it is time for the government to offer them a unilateral cease-fire, persuade them to negotiate, address their grievances, and try to integrate them into mainstream society.

• Intelligence and Investigation Agencies: The Intelligence Bureau and the Central Bureau of Investigation (CBI) need restructuring. The IB was set up through an administrative order in 1887. It is high time that it is given a statutory basis to prevent misuse of intelligence for political gain. 

  • The CBI was set up through a resolution in 1963, and it derives the power to investigate from the Delhi Special Police Establishment Act, 1946. 

    • It is an anomalous arrangement and, as recommended in the 24th report of the parliamentary committee, “the need of the hour is to strengthen the CBI in terms of legal mandate, infrastructure and resources”.

• Reforming State Police Forces: Legacy issues from colonial policing models and insufficient focus on community needs.

  • Transform state police from "Ruler's Police" to "People’s Police" to enhance public trust and effectiveness.
  • Adopting best practices from global reforms can modernize and improve policing standards.
• Central Armed Police Forces: The CAPFs, with over a million personnel, face internal issues such as unplanned expansion, haphazard deployment, inadequate training, declining discipline standards, vague criteria for top officer selection, and friction between cadre and All India Service officers. 

  • The government should appoint a high-powered commission to address these problems for long-term solutions.

• Technology: The police in the country can benefit greatly from incorporating technological advancements. Setting up a high-powered technology mission to recommend the latest technologies for addressing current and future challenges is crucial. 

  • By enhancing internal cohesion and addressing security issues, the country can project its strength internationally.

Conclusion

The fifth Positive Indigenisation List marks a significant step towards strengthening India's self-reliance in the defence sector. While the indigenisation efforts are poised to enhance defence capabilities and domestic production, addressing internal security challenges, including regional instability and systemic reform, remains crucial for maintaining national cohesion and stability. As India progresses, integrating these elements will be key to reinforcing its global position and internal resilience.

Read More: Office of NSA & India’s National Security Framework