In a significant move towards achieving the goal of Aatmanirbhar Bharat or self-reliant India, the Defence Minister of India has announced that the domestic industry will receive 75% of the entire capital outlay for defence procurements. This is a historic decision, as it marks the highest ever allocation of funds for domestic defence manufacturing.
As per the announcement, a record sum of 1 lakh crore has been earmarked for the domestic industry in the financial year 2023-24. This decision is aimed at boosting the indigenous defence manufacturing capability and reducing India’s dependence on imports. It is a crucial step towards making India a self-reliant and self-sufficient nation in the field of defence.
It is important to note that India’s defence budget for the financial year 2023-24 stands at 5.94 lakh crore, which accounts for approximately 13.18% of the union budget. Out of this budget, the capital outlay for modernization and infrastructure development components is 1.64 lakh crore. The decision to allocate 75% of the entire capital outlay for domestic industry will enable the country to strengthen its defence manufacturing ecosystem and create more job opportunities in the sector.
Addressing the Bandhan ceremony of 14th Aero India in Bengaluru, the defence minister termed the decision as an unprecedented step taken by the government at the outset of ‘Amrit Kaal’ to further strengthen the defence sector and minimise import dependency.
“If you take one step, the government promises to take ten steps forward. You spoke of land to run on the path of development. We are providing you full sky. Earmarking three-fourth of the capital procurement budget for the local industry is a step in that direction,“ defence minister said.
The defence minister said Bandhan was not just an agreement between two sides limited to economic benefit, but a new resolution to bolster the nation in the defence domain. He also emphasised that the partnerships forged with friendly countries will take their bilateral collaboration with India to the next level.
The Defence Minister also stressed the need to promote research and development in the defence sector, which will not only enhance the country’s defence capabilities but also spur innovation and entrepreneurship. The allocation of funds for domestic industry will give a boost to the ‘Make in India’ initiative, which is aimed at transforming India into a global manufacturing hub.
The announcement by the Defence Minister to allocate 75% of the entire capital outlay for defence procurements to the domestic industry is a significant step towards achieving self-reliance in the defence sector. It will not only reduce India’s dependence on imports but also create more opportunities for indigenous defence manufacturing. This decision is a testament to the government’s commitment to making India self-sufficient and self-reliant in all sectors.
“This is a new beginning. It has showcased that the Indian defence industry is ready to collaborate with other countries of the world. As many as 1,500 MoUs have been signed in the show, DRDO technology transfer agreements have been made, important decisions have been taken regarding manufacturing in private and public sector industries. The show has given a push to the defence industry at the global level,” the minister said.
