Defence stocks in focus post import ban on 101 items

After Defence Minister banned the import of 101 defence items with an aim to boost the defence sector, the stocks of this sector are seen trading in green during the early morning session.

Major companies in today’s trading session are trading in the green, which includes, BEL- up by 15 per cent, Bharat Dynamics- up by 11 per cent, Solar Industries India- up by 8 per cent, Hindustan Aeronautics- up by 10 per cent, Bharat Forge- up by 7 per cent and BEML- up by 6 per cent.

On Sunday, Defence Minister Rajnath Singh had made a major announcement to take the path of self-reliant India. To promote indigenisation of defence production, the import of 101 defence products will be banned and would be made indigenously henceforth.

There are plans to implement the ban on import between 2020 and 2024. With this ban, the domestic industry is likely to get contracts worth Rs 4,00,000 crore in the next six to seven years.

The 101 items list includes high technology weapon systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters, radars and many other items.

The list also contains wheeled armoured fighting vehicles. Out of which, Army is likely to receive contracts of nearly Rs 5,000 crore and the Navy is likely to place demands for submarines, of which, it expects contracts amounting to Rs 42,000 crore.