As part of its efforts to encourage the private sector to take part in defence production, the Union defence ministry has earmarked 25% of the domestic capital acquisition budget or ₹21,149 crore for the sector, the ministry said in a statement on Friday.
This comes two months after India set aside 68% of the capital procurement budget for the entire domestic industry during 2022-23 to promote self-reliance in the defence sector. This translated into an amount of ₹ 84,597.89 crore.
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 capital outlay is 12.8% higher than the budget estimates for 2021-22 when it was ₹1.35 lakh crore.
The amount set aside for domestic defence procurement this year is 68% of the defence services capital acquisition budget, which is ₹1.24 lakh crore.
India set aside ₹70,221 crore — 64% of the military’s capital budget — for domestic defence procurement last year, compared to ₹ 51,000 crore, or 58% of the capital budget, in 2020-21.