Govt to spend 75% of defence capital outlay for procurement from local cos: Rajnath Singh
PremiumThe 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
New Delhi: The government will spend 75% of the total defence capital outlay for procurement from domestic manufacturers from 2023-24, defence minister Rajnath Singh said on Wednesday.
In FY2023-24, Ministry of Defence (MoD) has been allocated a total budget of ₹5.94 lakh crore, which is 13.18% of the total budget ( ₹45.03 lakh crore). Capital outlay pertaining to modernisation and infrastructure development has been increased to ₹1.63 lakh crore.
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,“ he said.
The defence minister said he was confidence that the Indian industry will come forward with more enthusiasm and contribute in making the defence sector more powerful and prosperous. He was of the view that a strong and self-reliant defence industry not only strengthens the security system of the country, but also bolsters the economy.
Singh said, in the last few years, a domestic industry-friendly environment has been created in the country provides a runway for the local companies to grow and ensure holistic development of the nation while catering to the security needs of the friendly countries, in line with Prime Minister Narendra Modi’s vision of ‘Make in India, Make for the World’.
The Bandhan ceremony also witnessed the forging of 266 partnerships including 201 MoUs, 53 major announcements, nine product launches and three Transfers of Technology, worth around ₹80,000 crore.
Singh stated that the pacts completed during Bandhan will pave the way for enhanced FDI in defence and take the manufacturing in the sector to greater heights.
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.
Rajnath Singh stated that Aero India showcased to the world the ‘New Defence Sector’ of ‘New India’, which has not only grown in the last few years, but is now fully ready to walk alongside the defence sectors of leading countries.
The defence minister expressed satisfaction that the event paved the new way to strengthen the Indian defence industry, terming it as the beginning of a new era of ‘Aatmanirbharta’. He exuded confidence that the sector will move forward strongly on the path of progress with new energy and determination.
