New Delhi – The Indian Ministry of Defence has announced its sixth Positive Indigenisation List, identifying 405 strategically important items for domestic manufacturing. Defence public sector undertakings (DPSUs) Bharat Electronics Ltd (BEL) and Hindustan Aeronautics Ltd (HAL) are highlighted as primary beneficiaries of this significant initiative.
Boosting Domestic Defence Production
The latest Positive Indigenisation List (PIL) includes 16 items for the Indian Coast Guard (ICG) and 389 items for DPSUs, aiming to foster self-reliance in defence. This move is projected to generate business worth approximately Rs 3,100 crore, building on previous PILs that spurred domestic procurement exceeding Rs 10,000 crore and created an import substitution value of Rs 9,000 crore.
BEL's Strategic Investments
BEL has consistently demonstrated its commitment to the 'Atmanirbhar Bharat' (Self-Reliant India) objectives. The company has heavily invested in research and development, concurrently strengthening its vendor ecosystem through collaborations with Micro, Small, and Medium Enterprises (MSMEs). A dedicated Indigenisation Cell has also been established to streamline efforts towards deeper domestic sourcing and manufacturing.
HAL's Indigenisation Framework
Similarly, HAL has implemented robust strategies to enhance indigenous capabilities. The aerospace giant allocates 3 percent of its annual Profit After Tax (PAT) to a dedicated indigenisation fund. Furthermore, HAL actively pursues indigenous development through its 'Make-II' framework, a policy designed to encourage greater localization across its various platforms and supply chain.
Industry Analyst Perspectives
According to Amit Anwani, Vice President, Research Associate for Institutional Research at PL Capital, both BEL and HAL hold the highest share of items notified for indigenisation. PL Capital maintains an 'Accumulate' rating on BEL with a target price of Rs 452 and a 'Buy' rating on HAL with a target of Rs 5,795, citing their proactive initiatives in domestic sourcing.
The Role of the SRIJAN Portal
The broader ecosystem supporting defence indigenisation includes the SRIJAN Defence Portal, launched in August 2020. This platform connects DPSUs and Service Headquarters with domestic industries, facilitating the indigenous development and manufacturing of defence equipment. As of June 2026, over 33,000 items have been identified and offered for indigenisation via the portal, significantly expanding opportunities for MSMEs, start-ups, and other Indian defence manufacturers.