68% of defence purchases to be ‘made in India’

13.31% of total Union Budget, `5.25Lcr, earmarked for defence-related purposes

Amid heightened tensions with China at the LAC, the finance minister said Tuesday that India had put its faith in Made-in-India weapons, with 68 per cent of the `1.24 lakh crore defence procurement budget for India-made weapons. This comes to `84,598 crores.

The total defence budget of `5.25 lakh crores includes `1.19 lakh crores for defence pensions. This year’s defence budget is 9.82 per cent more than the 2021-22 estimates.

Amidst heightened tension with China which has forced oncrease of weapons and its military at the Line of Actual Control (LAC), India has put its tryst with Make-inIndia weapons to fight wars with its enemies. Union finance minister Nirmala Sitharaman on Tuesday said that 68% of defence procurement budget of armed forces, will be used to buy only India-made weapons.

The capital acquisition budget of armed forces in the Union Budget is pegged at `1.24 lakh crore for the FY 2022-23, out of which `84,598 crore will be used to buy India-made weapon systems.

Finance minister also said that for the first time 25% of defence research and development budget will be earmarked for private industry, start-ups and academia to develop next generation technologies to fight battles.

"Our government is committed to reducing imports and promoting AtmaNirbharta in equipment for the Armed Forces. 68 per cent of the capital procurement budget will be earmarked for domestic industry in 202223," said finance minister while presenting the Union Budget 2022-2023. The share of domestic capital procurement was 64% in 2021-22.

In 2021, government gave nod to a series of big ticket domestic acquisitions which include 83 Tejas Mk1A fighter jets for air force, six conventional submarines for Navy under Project 75(I), 118 Main Battle Tanks Arjun Mk-1A and Light Utility Helicopters.

Defence ministry has been allocated a total budget of `5.25 lakh crore, which is 13.31% of the total Union budget. This includes an amount of `1.19 lakh crore for defence pensions. The total defence budget represents an enhancement of Rs 46,970 crore (9.82 per cent) over Budget Estimates 2021-22.

Finance minister said that private industry would 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. An independent nodal umbrella body will be set up for meeting wide ranging testing and certification requirements.