Defence Stocks Rise Up To 8% As Govt Notifies 405-item Indigenisation List

Defence shares rose up to 8% on Tuesday after the Department of Defence Production (DDP), Ministry of Defence, notified the sixth Positive Indigenisation List (PIL) comprising 405 strategically important defence items with an estimated business potential of ₹3,070 crore.

At 1:45 pm, the Nifty India Defence index was trading 1.3% higher at 9,969.7, with Paras Defence and Space Technologies and Zen Technologies leading the gains, rising 8% and 6.6%, respectively.

Other stocks on the sectoral index also advanced. Axiscades Technologies, Garden Reach Shipbuilders & Engineers (GRSE) and Data Patterns were trading 4%, 3.3% and 3.2% higher, respectively.

The latest list includes Line Replaceable Units, sub-systems, sub-assemblies, spares, components and raw materials. Of the 405 items, 16 relate to the Indian Coast Guard, while 389 are associated with Defence Public Sector Undertakings (DPSUs).

Wide Range Of Defence Equipment Covered

The items cover several defence platforms and systems, including Advanced Light Helicopters, Light Utility Helicopters, Su-30MKI aircraft, Light Combat Aircraft and the AL-31FP engine.

The list also includes components for armoured platforms such as T-72, T-90 and BMP-II, along with equipment used in warships and missile systems including Konkurs-M, Invar and MRSAM.

Defence electronics such as radars, sonars, fire control systems and satellite communication systems are also covered. High Explosive Anti-Tank ammunition and other critical defence equipment form part of the list.

Each item has been assigned an indicative timeline for indigenisation. Following successful indigenous development, these products will be procured from Indian industry.

The DPSUs and Indian Coast Guard will undertake indigenisation through various routes, including the 'Make' procedure and in-house development, with participation from domestic industry, particularly MSMEs.

Opportunities For Domestic Defence Industry

The sixth PIL is part of the government's broader push towards self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative. The move is expected to create opportunities for domestic companies while encouraging investment and innovation across the defence manufacturing ecosystem.

The DDP launched the SRIJAN Defence Portal in August 2020 to facilitate indigenous development and production of defence items by Indian industry, including MSMEs and start-ups.

According to the Ministry of Defence, the portal had facilitated the offer of more than 33,000 defence items for indigenisation by DPSUs and Service Headquarters up to June 2026. This includes 5,012 items notified under the first five Positive Indigenisation Lists.

More than 15,700 defence items have been successfully indigenised, resulting in an estimated import substitution value of around ₹9,000 crore over the past five years.

In addition, DPSUs have placed procurement orders, including in-house production, worth approximately ₹10,000 crore with domestic vendors up to March 2026.