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Defence indigenisation and exports

How India buys Indian for its defence: the acquisition procedure, the indigenisation lists, defence exports, foreign investment and the items reserved for Indian industry. It serves GS3 answers on the indigenisation of technology.

Foundation note: Defence indigenisation: the procedure, the lists and the corridors

All 3 articles shown; the 0 that changed from 1 to 30 September 2026 are marked.Show only these

Positive Indigenisation List

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Prelims and Mains

A Positive Indigenisation List is a written assurance to private firms that an order is waiting for the defence parts it names.

  • A private firm will not spend on developing a part unless it knows the order is waiting.

What changed

  1. 19 Aug 2026New

    • The Department of Defence Production notified the sixth list.
    • The items are line replaceable units, sub systems, spares and components rather than whole platforms.
    • They fit platforms such as the Light Combat Aircraft (LCA), the Su-30MKI, T-90 tanks and the Medium Range Surface to Air Missile (MRSAM).
    • The Defence Minister approved transferring the Defence Research and Development Organisation's (DRDO) technologies for all conventional missile systems to Indian industry.

    The Hindu, 19 Aug 2026: Sixth Positive Indigenisation List notified (opens in a new tab) · PIB, 25 Aug 2026: DRDO missile technology transfer and sixth Positive Indigenisation List (opens in a new tab)

Defence Acquisition Council

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Prelims and Mains

Before the armed forces can buy anything large, a council chaired by the Defence Minister has to agree that they need it. The Defence Acquisition Council (DAC) is where a capital purchase is first approved, and what it grants is a decision rather than a payment.

  • Its clearance is the grant of Acceptance of Necessity, which is a decision to buy and not yet money committed.

Defence Forces Vision 2047 and the DRDO model

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Mains

Modern war is dominated by aerial, electronic and cyber warfare in multi domain operations, with drone swarms, loitering munitions and AI targeting. The Defence Forces Vision 2047 document stresses integrating the three services and creating dedicated Missile and Drone Forces backed by intelligence, surveillance and reconnaissance (ISR) capabilities. DRDO's heavy in house model contrasts with the US Defense Advanced Research Projects Agency (DARPA), which runs a lean team of project managers and outsources development; the Arjun tank (69 per cent foreign components) and the unfinished Kaveri engine illustrate the cost. Asymmetrical attrition: a larger power's tolerance for political, economic and human cost is finite, as multi million dollar interceptors fired at cheap drones show.

DRDO and DARPA

DRDO
  • Heavy in house model built on its own laboratories
  • The Arjun tank carries 69 per cent foreign components and the Kaveri engine is unfinished
DARPA
  • A lean team of project managers
  • Outsources development
DRDO builds in its own laboratories, while DARPA manages projects and has others build them.Source: The Indian Express, 27 June 2026