Sixth Positive Indigenisation List notified covering 405 defence items

India's defence manufacturing ecosystem has historically been characterised by heavy import dependence, with the country ranking among the world's largest arms importers for much of the post-independence period. The structural roots of this dependence lie in the Cold War-era preference for licensed production over indigenous design, the dominance of Defence Public Sector Undertakings (DPSUs) as near-monopoly producers, and the limited integration of private industry and MSMEs into the defence supply chain. The policy pivot toward self-reliance gained institutional momentum with the Aatmanirbhar Bharat initiative, which in the defence domain is operationalised through the Defence Acquisition Procedure (DAP) 2020 — replacing the earlier DPP 2016 — and through successive Positive Indigenisation Lists (PILs) issued by the Department of Defence Production (DDP) under the Ministry of Defence.

The PIL mechanism works by designating specific items — ranging from raw materials and components to complete platforms — as restricted from import after a notified deadline. Once an item appears on a PIL, domestic industry is given a defined window to develop indigenous production capability; upon successful indigenisation, procurement is routed exclusively to Indian manufacturers. This creates a guaranteed demand signal for domestic producers, which is critical for attracting private investment into a sector characterised by long gestation periods and high capital requirements. The government has set a target of 70% domestic procurement in defence by the mid-2020s, alongside a defence export target of Rs 50,000 crore by 2025.