Focus on self-reliance, 25% of budget set aside for pvt sector

THE OVERALL BUDGET HAS GONE UP BY 9.7% COMPARED TO LAST YEAR’S ALLOCATION

NEW DELHI: India on Tuesday earmarked ₹84,598 crore -- 68 % of the military’s capital acquisition budget -- for purchasing locally produced weapons and systems to boost self-reliance in the defence sector, besides setting aside 25% of the defence R&D budget for private industry, startups and academia to encourage them to pursue development of military platforms.

Presenting the Union Budget for 2022-23 in Parliament, finance minister Nirmala Sitharaman underlined the government’s commitment to promote self-reliance in the defence sector. India allocated ₹5.25 lakh crore for military spending in this year’s budget, including a total capital budget of ₹1.52 lakh crore for the modernisation of the armed forces.

This year’s defence budget accounts for 2.03% of the country’s projected gross domestic product (GDP) for 2022-23. It includes a revenue expenditure of ₹2.3 lakh crore and a pension outlay of ₹1.19 lakh crore.

The share of the defence budget stands at 13.3% of the total government expenditure.

“Our government is committed to reducing imports and promoting Atmanirbharta (self-reliance) in equipment for the armed forces,” Sitharaman said.

The minister added that an independent nodal umbrella body will also be set up for meeting wide-ranging testing and certification requirements of different systems.

The industry, meanwhile, welcomed the announcements. The capital outlay for domestic industries will sustain investments and attract fresh capacity creation, said Society of Indian Defence Manufacturers (SIDM) president SP Shukla. “Allocation of 25% of defence R&D budget for startups, academia and private industry is a much-needed reform,” he added.

The allocation for indigenous procurement, made for the third consecutive year, will power the purchase of Tejas LCA (light combat aircraft) Mk-1A jets, light combat helicopters (LCHs), basic trainer aircraft, Arjun Mk-1A tanks, a variety of missiles and other weapons, officials said.

Defence minister Rajnath Singh congratulated Sitharaman for presenting an “excellent budget”. “It is a Budget which would give fillip to ‘Make in India’, boost demand and build capacities for a stronger, prosperous and confident India,” he wrote on Twitter.