In a big boost to the Indian defence manufacturing sector, Finance Minister Nirmala Sitharaman announced that in FY22-23, 68 per cent of the capital expenditure budget for the defence sector will be reserved for domestic procurement.
Presenting the Union Budget 2022-2023 in the Parliament, Sitharaman said: "Our government is committed to reducing imports and promoting Aatmanirbharta (self-reliance) in equipment for the armed forces."
The minister said that defence research and development will be opened up for the industry, startups and academia with 25 per cent of defence research and development budget earmarked.
The Society of Indian Defence Manufacturing (SIDM) said in a statement: "SIDM welcomes the announcement of setting aside 68 per cent of capital outlay of defence budget for domestic industries, up from 58 per cent in the previous year."
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S.P. Shukla, President, SIDM, added that creation of a nodal body for setting up testing and certification requirements of defence systems and platforms will help the domestic industry through faster processes and cost-efficiency.
(With inputs from IANS)
