Govt Reserves 25% Of Defence Procurement Budget For Domestic Private Industry

To promote domestic defence production ecosystem, the Ministry of Defence has now decided that 25% of domestic capital procurement budget, amounting to ₹21,149 crore, will be earmarked for domestic private industry in FY23.

Further, to foster innovation and encourage technology development in defence, it has also been decided that an amount of ₹1,500 crore will also be earmarked for procurement from start-ups, including iDEX s-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,” the ministry of defence said in a statement.

Earlier, ministry of defence had decided to earmark 68% of capital procurement budget for the entire domestic industry during fiscal 2022-23. Accordingly, an amount of ₹84,597 crore was allocated specifically for Domestic defence industry in current financial year.