Defence stocks jump after India notifies sixth 405-item indigenisation list

The shares of defence companies surged sharply by up to 10% on Tuesday after the Defence Ministry launched the sixth indigenisation list containing 405 items that will only be sourced from Indian suppliers.Paras Defence shares rallied 10% to hit the upper circuit, jumping to a fresh 52-week high of Rs 1,527.30 apiece. Zen Technologies shares soared over 7%, while those of Dynamatic Technologies, Aequs, Data Patterns and Garden Reach Shipbuilders & Engineers (GRSE) jumped 3-5%.BEML, AstraMicro, Cochin Shipyard, MTAR Technologies, Midhani, Bharat Dynamics (BDL), Hindustan Aeronautics (HAL), Mazagon Dock Shipbuilders and Solar Industries shares meanwhile gained 1-2%.The sharp surge in the defence stocks pushed the Nifty India Defence index over 1% higher to 9,964 on Tuesday afternoon.Defence Ministry notifies sixth indigenisation list of 405 itemsThe Ministry of Defence’s Department of Defence Production (DDP) notified the sixth Positive Indigenisation List (PIL) comprising 405 strategically important items with an estimated business potential of Rs 3,070 crore. The list comprises line replaceable units, sub-systems, sub-assemblies, spares, components and raw materials. These include 16 items of the Indian Coast Guard (ICG) and 389 items of Defence Public Sector Undertakings (DPSUs), according to a press release.Advanced Light Helicopter, Light Utility Helicopter, Su-30MKI, Light Combat Aircraft and AL-31FP Engine are some of the items listed by the ministry, along with armoured platforms including the T-72, T-90 and BMP-II, along with warships and missile systems such as Konkurs-M, Invar and MRSAM."This sixth PIL marks another step in the Government’s efforts to promote self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative. It is expected to further expand opportunities for the Indian industry, strengthen the domestic defence manufacturing ecosystem, promote investment & innovation, and contribute to reducing dependence on imports,” the Defence Ministry said.It added that over 15,700 defence items have been successfully indigenised, resulting in an estimated import substitution value of about Rs 9,000 crore over the last five years. Additionally, DPSUs have placed procurement orders, including in-house production, worth approximately Rs 10,000 crore on domestic vendors up to March 2026.Also read | Defence Ministry notifies sixth indigenisation list of 405 items including gears for light helicopters, tanks and light combat aircraftSRIJAN portal offers over 33,000 defence items since inceptionThe sixth PIL is part of the government's efforts to promote self-reliance in defence manufacturing under the Aatmanirbhar Bharat initiative, the ministry said. It is expected to create additional opportunities for Indian industry, strengthen the domestic defence manufacturing ecosystem, encourage investment and innovation, and reduce dependence on imports.The DDP had launched the SRIJAN Defence Portal in August 2020 as a dedicated platform for DPSUs and Service Headquarters (SHQs) to offer defence items to Indian industry, including MSMEs and start-ups, for indigenous development and production.Till June 2026, the portal facilitated the offering of more than 33,000 defence items for indigenisation by DPSUs and SHQs. This includes 5,012 items notified through the first five Positive Indigenisation lists.Also read | Paytm block deal: Vijay Shekhar Sharma’s Resilient Asset likely sells nearly 2 crore shares worth Rs 2,949 crore(With inputs from agencies)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Defence stocks gained sharply on August 18 after the Department of Defence Production (DDP) under the Ministry of Defence notified the sixth Positive Indigenisation List (PIL) containing 405 strategically significant defence items. The government estimates the list could create business opportunities worth around Rs 3,070 crore for Indian manufacturers.The latest list covers Line Replaceable Units, sub-systems, sub-assemblies, spare parts, components and raw materials. Of the 405 items, 16 are meant for the Indian Coast Guard, while the remaining 389 are linked to Defence Public Sector Undertakings (DPSUs).Sensex, Nifty Fall as US-Iran Ceasefire Ends; Crude Oil Rises, IT Stocks Drag Markets Defence Stocks Gain on Indigenisation PushThe notified items span several major defence platforms and systems, including Advanced Light Helicopters, Light Utility Helicopters, Su-30MKI aircraft, Light Combat Aircraft and AL-31FP engines.The list also includes components required for armoured vehicles such as T-72, T-90 and BMP-II platforms, along with equipment used in warships and missile systems. Components associated with Konkurs-M, Invar and MRSAM missile systems have also been included.Defence electronics such as radars, sonars, fire-control systems and satellite communication equipment feature in the list, along with High Explosive Anti-Tank ammunition and other critical defence products.Paras Defence and Zen Technologies were among the biggest gainers, rising 8% and 6.6%, respectively. Axiscades, GRSE and Data Patterns also recorded gains of around 4%, 3.3% and 3.2%.Each product has been given an indicative deadline for achieving indigenisation. Once domestic development is successfully completed, procurement of these products will be made from Indian companies. Government Pushes Domestic Defence ManufacturingThe indigenisation programme will be implemented by DPSUs and the Coast Guard through mechanisms such as the ‘Make’ procedure and internal development, with greater participation from Indian companies, particularly MSMEs and start-ups.The sixth PIL is part of the government's broader Aatmanirbhar Bharat strategy aimed at building a self-reliant defence manufacturing ecosystem. Greater domestic production is expected to encourage investment, innovation and import substitution.