Defence Stocks Rise Up To 10% As Government Notifies Sixth Indigenisation List

Shares of several defence companies moved higher on 18 August after the Defence Ministry notified the sixth Positive Indigenisation List (PIL), reserving 405 strategically important items for sourcing from Indian suppliers. The list has an estimated business potential of ₹3,070 crore.

Paras Defence and Space Technologies was among the biggest gainers, rising up to 10% during the trading session to hit a fresh 52-week high of ₹1,527.30. Zen Technologies gained around 7%, while Dynamatic Technologies, Aequs, Data Patterns and Garden Reach Shipbuilders & Engineers rose between 3% and 4.5%.

Other Defence Stocks That Closed Higher

Apart from these, BEML, Astra Microwave, Cochin Shipyard, MTAR Technologies, Mishra Dhatu Nigam, Bharat Dynamics, Hindustan Aeronautics, Mazagon Dock Shipbuilders and Solar Industries also gained between 0.5% and 4.5%. The gains pushed the Nifty India Defence index up more than 1% to close at 9,968.25 on Tuesday.

What Is Included In The Sixth Indigenisation List?

The latest PIL covers 405 items, including 16 items from the Indian Coast Guard and 389 from Defence Public Sector Undertakings. The list includes line-replaceable units, subsystems, subassemblies, spares, components, and raw materials.

Items linked to platforms such as the Advanced Light Helicopter, Light Utility Helicopter, Su-30MKI, Light Combat Aircraft and AL-31FP engine are included. It also covers equipment for the T-72, T-90, and BMP-II, along with warships and missile systems, including Konkurs-M, Invar, and MRSAM.

How Large Is India's Defence Indigenisation Drive?

The sixth list adds to the government's wider effort to reduce dependence on defence imports. According to the Defence Ministry, more than 15,700 defence items have been indigenised over the past five years, resulting in estimated import substitution of around ₹9,000 crore.

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

The SRIJAN Defence Portal, launched in 2020 to help DPSUs and service headquarters offer items to Indian companies for indigenous development and production, had facilitated the offering of more than 33,000 items for indigenisation by June 2026. This included 5,012 items from the first five PILs.

The latest list reserves an additional set of defence requirements for sourcing from Indian suppliers, creating potential opportunities for companies involved in components, systems, spares and other equipment covered by the notification.

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