New Delhi: Stating it had set aside 64 per cent of the capital acquisition budget for domestic industry in the financial year 2021-22, the Union Defence Ministry on Wednesday said it has been able to “over achieve” the target.
The Defence Ministry said it has utilised 65.50 percent of the capital acquisition budget on making procurements from domestic sources.
‘The Ministry of Defence (MoD) had earmarked 64 percent of capital acquisition budget for domestic industry in financial year 2021-22,” it said in a statement, PTI reported.
The statement added the Ministry of Defence has at the end of 2021-22 been able to over achieve this target and has utilised 65.50 percent of capital acquisition budget on indigenous procurements through Indian industry to achieve Prime Minister Narendra Modi's vision of ‘Aatmanirbhar Bharat’.
The Defence Ministry said further said that it has been able to utilise 99.50 per cent of the defence services budget in 2021-22.
“As per preliminary expenditure report of March 2022, MoD has been able to utilise 99.50 per cent of the defence services budget in FY 2021-22,” the statement said.
The Central government has in the last few years taken a series of measures to boost domestic defence manufacturing.
Earlier in May 2020, the Centre announced increasing the FDI limit from 49 percent to 74 percent under the automatic route in the defence sector.
India is one of the largest importers of arms globally.
The Indian armed forces, as per estimates, are projected to spend around USD 130 billion (in capital procurement in the next five years.