Indian Govt to Earmark 68% of Defence Procurement Budget for Domestic Industry
The Indian government said Tuesday it will invest 68% of the annual defence budget on domestic industry.
“68% of the capital procurement budget for Defence to be earmarked for domestic industry to promote Aatmanirbharta and reduce dependence on imports. This is up from the 58% last fiscal,” Finance minister Nirmala Sitharaman said.
“Defence R&D will be opened up for industry, start-ups, and academia, with 25% of defence budget earmarked. Private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with DRDO and other organisations through Special Purpose Vehicle (SPV) model,” Sitharaman announced.
An independent nodal umbrella body will be set up for meeting wide ranging testing and certification requirements, she said.
“Artificial intelligence (AI), geospatial systems, drones, semiconductors, green energy, space energy etc have immense potential to assist sustainable development,” the finance minister stated.
