Budget 2022: 68% Defence Budget Earmarked For Domestic Industry To Boost Atmanirbhar Bharat, Says FM Sitharaman

Meanwhile, 25 percent of the defence R&D budget is earmarked for private industry, startups and academia. Pvt Sector-DRDO corporate special purpose vehicles (SPVs) to be encouraged, 

Representational Image | PTI

New Delhi: The Union Finance Minister presented the budget for the interim year 2022-23 today. In this year’s budget, 68 percent of the capital procurement budget for Defence had been earmarked for the domestic industry. It is a step towards the promotion of Atmanirbhar Bharat that would reduce the dependency on imports of defence equipment. 

68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports of defence equipment. This is up from the 58% last fiscal: FM Nirmala Sitharaman#Budget2022 pic.twitter.com/pQJm3ymlQE

— ANI (@ANI) February 1, 2022

Last year’s budget had a 58 percent allotment for the domestic industry. Meanwhile, 25 percent of the defence Research and Development budget is earmarked for private industry, startups and academia. Pvt Sector-DRDO corporate special purpose vehicles (SPVs) to be encouraged.

The Finance Minister also added that the private industry will be encouraged to design and develop military platforms and equipment. "Private industry will be encouraged to take up the design and development of military platforms and equipment in collaboration with Defence Research and Development Organisation (DRDO) and other organizations through the special purpose vehicle (SPV) model," the Finance Minister was quoted as saying by news agency ANI.

Along with that, an independent nodal umbrella agency will also be set up to meet test and certification requirements, added the Finance Minister. The steps have been taken to push the country towards 'atmanirbharta' (self-reliance) including in the sector of manufacturing and defence.