Stepping up its effort to promote the Indian private sector in Defence manufacturing, the Government on Friday earmarked 25 per cent of the Rs 84,597.89 crore allocated for the entire domestic industry for the current financial year.
The 25 per cent block for the private sector amounts to more than Rs 21,000 crore and forms part of the overall 68 percent capital budget earmarked for the Indian industry.
Giving the details, Defence Ministry officials said in continuation with the Government’s efforts to promote private industry, MSMEs and start-ups in Defence production ecosystem, the Ministry has decided that 25 per cent of Domestic Capital Procurement and Acquisition Budget, amounting to Rs 21,149.47 crore, will be earmarked for Domestic Private Industry in 2022-23.
Further, to foster innovation and encourage technology development in defence, it was decided that an amount of Rs. 1,500 Crore will be earmarked for procurement from start-ups, including iDEX Start-up, from within the allocations for Domestic Capital Procurement. These steps will foster the growth of private industry, MSMEs and start-ups in Defence ecosystem.
Earlier, the government had decided to earmark 68% of the Capital procurement budget for the entire domestic industry during Financial Year 2022-23. Accordingly, an amount of Rs. 84,597.89 Crore was allocated specifically for the domestic defence industry in the current fiscal year, they said.