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

In continuation with Government’s efforts to promote Private Industry, MSMEs and Startups in defence production ecosystem, the Ministry of Defence has now decided that 25% of the Domestic Capital Procurement/ Acquisition Budget, amounting to Rs. 21,149.47 Crore, will be earmarked for Domestic Private Industry in the Financial Year 2022-23.

Further, to foster innovation and encourage technology development in Defence, it has also been 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, Ministry of Defence had decided to earmark 68% of 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 Domestic defence industry in current Financial Year. (PIB)